Toshiba, (Other OTC: TOSBF.PK) one of the world’s most recognized manufacturers of electrical products, has announced a shift in its energy acquisition policy as it moves away from nuclear energy and into renewables.
Before the Japan natural and nuclear disaster, the company had projected profit margins of 10% on its nuclear reactors over the next two years, benefiting from growing demand from China, Vietnam and the U.S. Reports say the manufacturing giant had planned to significantly expand nuclear sales over the next fours years, to the tune of US$7.5 billion.
But the devastating earthquake, tsunami and subsequent nuclear meltdown has not only raised safety issues around nuclear energy but has soured global perception and, therefore, demand for the once highly profitable sector of Toshiba.
So, Toshiba has decided to shift its business focus to meet consumer demand. The company has announced it will aim for sales of $2.6 billion in solar, hydroelectric, geothermal and wind, $6.1 billion in energy efficient motors, and $6.8 billion in smart grid technology.
According to the company President Norio Sasaki, “If everyone around the world is against nuclear power, there is no point in us saying it is a pillar of our strategy. But it is going to take some time to work out exactly what the environment is."
Japan has seen a flurry of activity on the renewable energy front as of late, with the Prime Minister slated to make a major announcement around compulsory solar installations at the G8 meeting this week.
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