Hitachi Suspends N-Plant Project in Britain

Tokyo, Jan. 17 (Jiji Press)--The board of Hitachi Ltd. approved plans on Thursday to suspend a project to build a nuclear power plant in Britain. The move by the Japanese heavy machinery maker is designed to prevent further losses as it was unable to receive financial assistance for the project amid concerns over its profitability. Hitachi will book around 300 billion yen in special losses for the business year ending in March. The company cut its consolidated net profit forecast for the year from 400 billion yen to 100 billion yen. In a statement, Hitachi said it "has decided to suspend the project at this time from the viewpoint of its economic rationality as a private enterprise." "It is now clear that further time is needed" to develop a financial structure and other conditions for the project, the company said. Speaking at a press conference in Tokyo, Hitachi President and Chief Executive Officer Toshiaki Higashihara said the company will not be able to invest any more in the project unless the British government puts forward a new proposal that makes economic sense. "We can't carry any risks over by delaying the decision-making," he said. Hitachi will consider the possibility of selling and pulling the plug on its British nuclear business, sources familiar with the situation said. In 2012, Hitachi acquired a British nuclear plant operator to build two reactors on the island of Anglesey. To reduce its exposure to risks, Hitachi planned to lower its stake in the nuclear plant operator to less than 50 pct by selling shares to major power companies and government lenders in Japan. But Hitachi faced difficulties in collecting investments as concerns over the project's profitability grew as its total cost reached 3 trillion yen, exceeding the initial estimate due to the ballooning cost of safety measures. Japan's Mitsubishi Heavy Industries Ltd. is considering giving up on a project to build a nuclear power plant in Turkey. These moves will severely affect the Japanese government's plan to promote nuclear exports. END