Toshiba Exploring Collaboration with Atomenergoprom

20 March 2008

Toshiba Corp. has signed a general framework agreement with Atomenergoprom, Russia’s state-owned nuclear energy company, to explore collaboration in the civilian nuclear power business field.

Based on the agreement, the parties will start feasibility studies to consider cooperation which includes designing and engineering to construct commercial nuclear power plants, manufacturing and maintenance of large equipment, and front-end civilian nuclear fuel cycle business. Complementary relations between the two companies could lead to the establishment of a strategic partnership. The agreement could also contribute to stable and secure supply of services in front-end civilian nuclear fuel cycle in Japan, the United States and elsewhere.

The cooperation between the two companies will be strictly limited to the peaceful use of nuclear power and will be undertaken within the current and future framework of cooperation between the two countries’ governments, as well as the international framework for peaceful use of nuclear power, according to Toshiba.

If any technology exchange should occur in the future, it will be only conducted in accordance with the international agreement and national legislation of relevant countries. This agreement is fully consistent with the goals and objectives of the Global Nuclear Energy Partnership (GNEP). Russia, Japan and the United States have all affirmed their support for GNEP.

Earlier this month, Toshiba announced that it has established a new company in the United States to enhance its nuclear power businesses.

The new company, Toshiba America Nuclear Energy Corporation, started operation this month, with the primary mission of marketing and promoting advanced boiling water (ABWR) nuclear power plants and providing support for related services. As this business develops, Toshiba also plans to expand the scope of the new company’s operations to provide licensing and extensive engineering support related to construction of future nuclear power plants, including plant design and procurement.

In the United States, major utilities have announced plans to build more than 30 new nuclear power plants in coming years. Toshiba and Westinghouse, a Toshiba Group company, are responding to this trend by promoting marketing activities to win orders for both advanced boiling water reactors (ABWR) and pressurized water reactors (AP-1000) and their related systems.