Japanese conglomerate Toshiba will withdraw from the 3.8 GW Moorside nuclear power plant project in West Cumbria (United Kingdom) and wind up its subsidiary project company NuGeneration (NuGen) in January 2019, in line with its new strategy to eliminate risks related to the overseas (outside Japan) nuclear power construction business. The project was believed to be uneconomic and in a tremendous situation after Toshiba failed to find a partner and decided to lay off 60% of its workforce in September 2018. Toshiba has spend more than £400m (€458m) on the project and the closing of the subsidiary will cost around £125m (€143m).
NuGen was set up by Toshiba (60%) and Engie (40%) in 2010 for the development of the project, which should have featured three Westinghouse AP1000 nuclear reactors of 1,200 MW each, but Westinghouse - a Toshiba subsidiary - filed for bankruptcy in March 2017, threatening the entire project. Consequently, Engie withdrew from the project and sold its 40% stake in the project company NuGen to its partner Toshiba, which has been the sole owner of NuGen since April 2017.
This decision is a major blow for the British nuclear industry and leaves a huge hole in the domestic energy policy as the power plant was slated to deliver around 7% of the UK's electricity once built. It is likely to dent the development of new power plants in the country.