Today I Became a Toshiba Employee

schwarcw

FYI, big business in motion. My job will not change but now I will have a new employer (on paper).

FOR IMMEDIATE RELEASE
October 17, 2006
Toshiba Completes Westinghouse Acquisition
Heralds the Dawn of a New Era for Nuclear Energy

TOKYO--Toshiba Corporation today announced its acquisition of BNFL USA Group Inc. and Westinghouse UK Limited (collectively Westinghouse), following completion of the final arrangements with British Nuclear Fuels Limited on October 16, US Eastern Standard Time. Westinghouse Electric Company is now a Toshiba Corporation consolidated group company.

The integration of Westinghouse into Toshiba, along with its extensive expertise in nuclear power generation and nuclear fuel and worldwide market presence, is of great significance in terms of taking Toshiba Group's energy systems business to the global level. The powerful combination of Toshiba and Westinghouse's respective strengths, complementary technologies and businesses, will position Toshiba as the world’s leading nuclear power group, with an unrivaled business range extending to both BWR*1 and PWR*2 systems.

Toshiba established two holding companies in the U.S. and the U.K., Toshiba Nuclear Energy Holdings (US) Inc. and Toshiba Nuclear Energy Holdings (UK) Limited, to carry out the acquisition. Through these holding companies, Toshiba has invested US4,158 million dollars in acquiring a 77 percent share of Westinghouse, giving Toshiba management control of the company. The remaining 23% is held by two strategic partner companies: the Shaw Group Inc. of the USA invested US1,080 million dollars in a 20% stake, while Japan’s Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) invested US162 million dollars in a 3% stake. Toshiba discussed capital participation with potential partners in terms of mutual understanding of long-term business strategy, a shared market vision, and complementary relations and maximized synergies in conducting business. Toshiba continues discussions with several potential partners.

Following the acquisition, Westinghouse will retain its operating autonomy and remain headquartered in Pennsylvania. By strengthening Westinghouse’s operational structure to maximize synergy with Toshiba and its partners, Toshiba will seek to promote the expansion of Westinghouse’s business.

*1 BWR: Boiling Water Reactor, a reactor developed and commercialized by General Electric of the U.S.
*2 PWR: Pressurized Water Reactor, a reactor developed and commercialized by Westinghouse of the U.S.

Significance of the Acquisition
There is renewed global interest in nuclear energy, driven by concerns to secure stable electric power supplies, promote conservation, and develop environmentally friendly energy technologies. Public awareness of the need for additional nuclear energy capacity is emerging in the United States and Europe, and in the fast-growing Asian economies. China and other growing economies have already planned new investments in plant construction. There are currently 439 nuclear power plants in operation worldwide, and demand for nuclear energy is expected to grow, as it complements the resource-saving and recycling-oriented society of the 21st century. From 2002 to 2020, the global nuclear energy market is expected to grow 130-gigawatt, equivalent to 130 1-gigawatt plants, the typical plant size anticipated in future.

Toshiba is a leader in BWR technology, with a major presence in the Japanese market. Westinghouse enjoys a leading position in the world market with its PWR nuclear systems. The combination of Toshiba and Westinghouse will leverage capabilities in manufacturing, sales and marketing, and in engineering and R&D. The complementary partnership will go beyond the simple addition of the two businesses, and reinforce the ability to enter new business areas where the companies have found it difficult to operate individually in the past.

By integrating Westinghouse’s operations and promoting operational and technological synergies, Toshiba expects sales in its nuclear power business to expand to 700 billion yen by 2015 and 900 billion yen by 2020, compared with 200 billion yen today.

tommyboy

getting a raise?:D

or getting laid off?:(

audiobliss

If any changes do affect you, I hope they're for the better.

janmike

The outlook sounds promising. Hope you are part of the benefits the company is looking to see.

fireshoes

Is that the same company as the one that makes Westinghouse LCD's then? Because I didn't see any mention about electronics.

mrbigbluelight

Sounds like it'll work out well for you, Schwarcw.

.....don't get involved with Toshiba's switchgear division, though. Their switchgear cabinets are death traps.

So....looks like if you're not killed, you'll come out smelling like roses !

Ricardo

wow...the **** are taking over...:eek: :eek:

You'll probably not even notice the change..more than "in paper".

Good luck.

seo

I had haeard that it was some sort of partnership between Shaw and Toshiba buyng you guys. If so my condolences (because of Shaw.)

edit: I reread and did see that Shaw was involved. Sorry. Hope it works out ok for you.

schwarcw

fireshoes wrote:

Is that the same company as the one that makes Westinghouse LCD's then? Because I didn't see any mention about electronics.

The licensing rights to use the "Westinghouse" name and logo are owned by CBS/Viacom. These companies were once owned by Westinghouse and they turned out to be internal "raiders" (selling off assets to buy more media companies).

The old "Westinghouse Electric Corp." has not made a consumer product since the 1960's. Light bulbs business was sold to Phillips, Appliance business was sold to White, piece parts was sold to a company that was named "WESCO" (Westinghouse Electric Supply Company).

The "Westinghouse" name is a huge business. We here in the nuclear power business are the last remaining part of the original company formed by George Westinghouse, that still uses the "Westinghouse" name. But we use the name under license from CBS/Viacom.

schwarcw

audiobliss wrote:

If any changes do affect you, I hope they're for the better.

Business is very strong! No layoffs or anything like that. Actually, we are planning to hire 800 engineers this year.

I keep telling you to get your Mechanical Engineering degree Michael!!:)

schwarcw

seo wrote:

I had haeard that it was some sort of partnership between Shaw and Toshiba buyng you guys. If so my condolences (because of Shaw.)

edit: I reread and did see that Shaw was involved. Sorry. Hope it works out ok for you.

Shaw is an equity owner. I don't like them either. We definitely need the help of a large A/E firm.

Carl

schwarcw

janmike wrote:

The outlook sounds promising. Hope you are part of the benefits the company is looking to see.

I believe this to be the case. Experienced people is what they wanted to buy, along with the intellectual property.

Carl

George Grand

Good luck Carl. I hope this is something that turns out to be good for you and yours.

BlueMDPicker

Best wishes, Carl!

MSALLA

Good luck with your new employers.

bert26

Good luck Carl - I hope everything works out for the best!

Chris

Emlyn

I thought a 77 percent share of Westinghouse seemed kind of high for that kind of deal:

http://www.asahi.com/english/Herald-asahi/TKY200610180165.html

170 billion yen sounds like a lot of money to be screwed out of. I think I'd be "displeased" too. :mad:

You are in a big growth industry, although I'd anticipate somewhat lean times the next couple of years in parts of the company. Not in engineering though.

SCompRacer

Ditto on the best wishes Carl.

schwarcw

Emlyn wrote:

I thought a 77 percent share of Westinghouse seemed kind of high for that kind of deal:

http://www.asahi.com/english/Herald-asahi/TKY200610180165.html

170 billion yen sounds like a lot of money to be screwed out of. I think I'd be "displeased" too. :mad:

You are in a big growth industry, although I'd anticipate somewhat lean times the next couple of years in parts of the company. Not in engineering though.

Thanks for the link. None of this info was provided in the Toshiba release or the Westinghouse release this AM.

I appreciate all your good wishes. This is a better deal for us than being owned by General Electric. Old uncle George Westinghouse would be rolling in his grave if he knew his old Nemesis Tom Edison had the last laugh!

Carl

Shizelbs

Hope this brings good things your way.

Free HD DVD players for all? Think about it.

PolkThug

I expect a review of the first nuclear powered HD DVD player!