Nov. 29, 2010 — 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 America’s (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. Under certain circumstances, the credit facility will convert to equity in the South Texas Project upon 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., Shaw’s chairman, president and chief executive officer. “Now with our agreement with Toshiba, Shaw is able to promote not only Westinghouse AP1000, the world’s first Generation III+ nuclear technology but also ABWR, the world’s 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 Shaw’s Power segment’s backlog of unfilled orders in the first quarter of fiscal year 2011.