BATON ROUGE, La.--The Shaw Group Inc. (NYSE: SHAW) and Toshiba Corporation (TOKYO: 6502) today announced an expanded global strategic partnership between the two companies.
Under the agreement, Shaw will have certain exclusive opportunities for providing engineering, procurement and construction services for new Toshiba Advanced Boiling Water Reactor (ABWR) nuclear power plants worldwide, except Japan and Vietnam.
Shaw immediately will assume the role of engineering, procurement and construction contractor for Nuclear Innovation North Americas (NINA) South Texas Project Expansion, which will use ABWR technology for two new nuclear units, as a consortium team member with Toshiba America Nuclear Energy, a U.S. based Toshiba subsidiary.
Shaw will invest $250 million for an ABWR alliance with Toshiba, $100 million of which will be available as a credit facility for NINA to assist in financing the development of the South Texas Project. The credit facility will convert to equity in NINA upon the satisfaction of certain conditions including the project receiving full notice to proceed, which is expected in mid-2012.
Toshiba and Shaw have a proven relationship combining our expertise and resources in nuclear power, said J.M. Bernhard Jr., Shaws chairman, president and chief executive officer. Now with our agreement with Toshiba, Shaw is able to promote not only Westinghouse AP1000, the worlds first Generation III+ nuclear technology, but also ABWR, the worlds most proven advanced nuclear technology, to our customers.
Toshiba and Shaw already have achieved a joint global leadership position in the nuclear power industry, said Yasuharu Igarashi, corporate senior vice president of Toshiba Corporation. Our new agreement further solidifies our relationship and position in the industry.
An undisclosed amount for initial services for the South Texas Project will be added to Shaws Power segments backlog of unfilled orders in the first quarter of fiscal year 2011.
The Shaw Group Inc. (NYSE:SHAW) is a global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2010 annual revenues of $7 billion, Shaw has approximately 27,000 employees around the world and is the power sector industry leader according to Engineering News-Records list of Top 500 Design Firms. Shaw offers a premier portfolio of nuclear, fossil and renewable power expertise, delivering safe, efficient and clean energy solutions around the world. Shaw has a 20 percent equity interest in Westinghouse.
Toshiba is a world leader and innovator in pioneering high technology, and a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances. Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 204,000 employees worldwide and annual sales surpassing 6.3 trillion yen (US$68 billion). Visit Toshiba's web site at www.toshiba.co.jp/index.htm.
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