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Toshiba to withdraw from nuclear plant construction, chairman to quit

TOKYO (Kyodo) -- Toshiba Corp. will take no new orders related to the construction of nuclear power stations, with the company's chairman expected to resign over the massive write-down that has doomed the company's U.S. nuclear business, sources said Saturday.

    The company's decision to cease taking orders effectively marks its withdrawal from the plant construction business.

    Toshiba said Friday it will review nuclear operations and spin off its chip business to raise funds by selling a stake in the new chip company, covering the expected write-down in the nuclear business which could reach 700 billion yen ($6.08 billion).

    After Toshiba ceases taking new orders, it will focus on maintenance and decommissioning operations. The company will continue work on four nuclear plants under construction in the United States that are expected to be completed by 2020.

    The Japanese industrial conglomerate may announce company chairman Shigenori Shiga's resignation as soon as Feb. 14, when it reports its April-December financial results.

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