By Lee Hyo-sik
The Korea Electric Power Corp. (KEPCO) has emerged as a potential buyer for the debt-ridden Westinghouse Electric Corp. as Mitsubishi, GE and other possible bidders have expressed disinterest in the American nuclear firm.
Last month, Japanese electronics firm, Toshiba, announced a plan to dispose of Westinghouse, which it acquired in 2006 for $5.4 billion, to raise much-needed fresh funds to prop up its deteriorating financial health. The company also said it will sell a 60 percent stake in a consortium, NuGen, which plans to build a nuclear plant in Britain.
Hit hard by falling demand for nuclear power plants following the meltdown of Japan's Fukushima plant in 2011, Westinghouse has been grappling with declining sales. The delayed construction of two U.S. nuclear power plants has also chipped away at its financial soundness.
"We have not been contacted by Toshiba or any other entities regarding the sale of Westinghouse," a KEPCO spokesman said. "If we receive a request for a proposal or any other official document, we will certainly review it. But until then, it is hard for us to elaborate more on the matter."
The official said the nuclear power plant project is a risky business, stressing that it will take a substantial period of time for KEPCO to make a final decision.
"Risk management is key in our business. We will have to take many steps, in this case, to decide whether to acquire Westinghouse or not," he said. "Many industry officials have floated an idea that since KEPCO wants to become a global nuclear industry leader, it would be very much interested in buying the U.S. firm. But the matter is much more complicated than that."
Korea's state-run utility firm has been building four nuclear reactors in the United Arab Emirates since 2009, the $20 billion scheme to be completed by May 2020.
But the company has not been able to secure additional deals in the Middle East or elsewhere, causing a setback to its goal of becoming one of the world's top nuclear plant operators.
Under such circumstances, acquiring Westinghouse or a stake in NuGen will likely facilitate KEPCO's nuclear expansion, according to some government officials.
"Korea is interested in becoming part of the (NuGen) consortium," said an official at the Ministry of Trade, Industry and Energy. "We are reviewing how profitable building a nuclear plant in Britain would be and how much we would invest in this project."
Mitsubishi, which competed with Toshiba for Westinghouse in 2006, has said it would not invest in Westinghouse, while GE and French power firm EDF are reportedly not interested in the struggling U.S. firm, given its financial trouble and the nuclear power industry slump.
Westinghouse has played a crucial role in the development and operation of nuclear energy throughout the world.
It also provided technology and major equipment for nuclear power plants of Korea, which secure around 30 percent of its electricity from nuclear sources.
In many cases, Westinghouse has also been a competitor of KEPCO in the latter's bid to win global contracts of building nuclear power plants.
The Korea Electric Power Corp. (KEPCO) has emerged as a potential buyer for the debt-ridden Westinghouse Electric Corp. as Mitsubishi, GE and other possible bidders have expressed disinterest in the American nuclear firm.
Last month, Japanese electronics firm, Toshiba, announced a plan to dispose of Westinghouse, which it acquired in 2006 for $5.4 billion, to raise much-needed fresh funds to prop up its deteriorating financial health. The company also said it will sell a 60 percent stake in a consortium, NuGen, which plans to build a nuclear plant in Britain.
Hit hard by falling demand for nuclear power plants following the meltdown of Japan's Fukushima plant in 2011, Westinghouse has been grappling with declining sales. The delayed construction of two U.S. nuclear power plants has also chipped away at its financial soundness.
"We have not been contacted by Toshiba or any other entities regarding the sale of Westinghouse," a KEPCO spokesman said. "If we receive a request for a proposal or any other official document, we will certainly review it. But until then, it is hard for us to elaborate more on the matter."
The official said the nuclear power plant project is a risky business, stressing that it will take a substantial period of time for KEPCO to make a final decision.
"Risk management is key in our business. We will have to take many steps, in this case, to decide whether to acquire Westinghouse or not," he said. "Many industry officials have floated an idea that since KEPCO wants to become a global nuclear industry leader, it would be very much interested in buying the U.S. firm. But the matter is much more complicated than that."
Korea's state-run utility firm has been building four nuclear reactors in the United Arab Emirates since 2009, the $20 billion scheme to be completed by May 2020.
But the company has not been able to secure additional deals in the Middle East or elsewhere, causing a setback to its goal of becoming one of the world's top nuclear plant operators.
Under such circumstances, acquiring Westinghouse or a stake in NuGen will likely facilitate KEPCO's nuclear expansion, according to some government officials.
"Korea is interested in becoming part of the (NuGen) consortium," said an official at the Ministry of Trade, Industry and Energy. "We are reviewing how profitable building a nuclear plant in Britain would be and how much we would invest in this project."
Mitsubishi, which competed with Toshiba for Westinghouse in 2006, has said it would not invest in Westinghouse, while GE and French power firm EDF are reportedly not interested in the struggling U.S. firm, given its financial trouble and the nuclear power industry slump.
Westinghouse has played a crucial role in the development and operation of nuclear energy throughout the world.
It also provided technology and major equipment for nuclear power plants of Korea, which secure around 30 percent of its electricity from nuclear sources.
In many cases, Westinghouse has also been a competitor of KEPCO in the latter's bid to win global contracts of building nuclear power plants.
