Toshiba 1997 Annual Report Download - page 14

12.
Topics
Nuclear Power Plants
In Japan, demands for lower costs for nuclear power
facilities increased amid a slowdown in investments
in this field by Japanese electric utilities. Overseas,
demand for power generation is surging, notably in
Asia, but fierce competition with U.S. and European
firms is holding down prices. In response, Toshiba
is promoting its prowess in advanced boiling water
reactors (ABWRs) and other sophisticated tech-
nologies to enhance its competitive position.
Inspections and improvements at operating plants
represent other opportunities to generate sales.
Complementing these actions are concerted efforts
to hold down costs by adopting uniform
designs and boosting overseas procurement
activities.
In November 1996, the world’s first
ABWR began commercial operation at
Kashiwazaki-Kariwa Nuclear Power Station
Unit No. 6 of Tokyo Electric Power Co.,
Inc. (TEPCO). Toshiba led the consortium
that constructed this unit; other key members were
Hitachi, Ltd. and General Electric Co. of the United
States. Unit No. 7, another ABWR, is scheduled to
start commercial operation in July 1997. The
ABWR design offers outstanding safety and excel-
lent performance at a relatively low cost. As a leader
in this field, Toshiba plans to help meet the rising
demand for ABWR nuclear power generation in
other, mainly Asian, nations.
Other Power Plants and Equipment
Competition for power plants and equipment
heated up in Japan as utilities reduced outlays for
new facilities. In this difficult environment, Toshiba
is focusing on highly efficient combined-cycle
generation equipment and exports of thermal power
plants to rapidly growing overseas markets. In
Japan, Toshiba is currently building two combined-
cycle plants: TEPCO’s Yokohama Thermal Power
Station and a new unit at the Shin-Nagoya Thermal
Power Station of Chubu Electric Power Co., Inc.
There were several significant completions in Japan
during the fiscal year: power generation equipment
for Shiriuchi Thermal Power Station Unit No. 2
(350MW) of Hokkaido Electric Power Co., Inc.;
power generation equipment for Haramachi
Thermal Power Station Unit No. 1 (1,000MW) of
Tohoku Electric Power Co., Inc.; and 500KV gas-
insulated switch gears for the Seburi Substation of
Kyushu Electric Power Co., Inc. Overseas, Toshiba
delivered two gas insulated switch gears, a 500KV
version for a customer in Argentina and a 345KV
version for a customer in Taiwan.
The Shin-Nagoya Thermal
Power Station uses a highly
efficient Toshiba combined-
cycle generation system.
Results
Share of Net Sales %
22.7 24.7 22.4 22.8 20.5
Mar. ’93 ’94 ’95 ’96 ’97
Tomohiko Sasaki
Executive Vice
President
Heavy Electrical
Apparatus
Sales (see note on page 22)
Annual Increase (%)
Sales in the heavy electrical apparatus segment decreased 5 percent
to ¥1,172.8 billion. The primary cause was a fall in sales of power
plants and equipment as Japan’s electric utilities cut back on capital
spending. Exports of industrial electrical apparatus and machinery,
transportation equipment, and overall sales of elevators and escalators
were all higher. With more than a century of experience in power
generation and distribution, Toshiba ranks among the world’s most
preeminent names in this immense market. Toshiba plans to draw on
this position to meet rising demand from Asian nations.
93March
0
300
600
900
1,200
-20
-10
0
10
20
94 95 96 97
(%)(¥ billion)
Sales