The incoming chairman of Tokyo Electric Power Co. said he is open to forming alliances with companies outside of Japan as the nation¡¯s largest utility seeks to restructure its operations and fund the massive cost of cleaning up the Fukushima nuclear disaster.
¡°We would not rule out an alliance simply because it¡¯s foreign,¡± said Keisuke Yokoo, who was nominated as Tepco¡¯s next chair in April, with his formal appointment expected later this month at the annual shareholders¡¯ meeting.
His remarks to reporters on Tuesday come as the utility pushes ahead with a business plan unveiled in January, which includes a search for partnership proposals to secure investments and help turn its business around, as well as the sale of some assets.
Since Tepco is a public utility, which supplies electricity to Japan¡¯s most populous region, any potential partnership that involves restructuring the firm with a foreign entity could get more scrutiny from the government than an alliance with a domestic firm.
Yokoo did not state a preference for domestic or non-Japanese partners. ¡°What truly matters is what businesses Tepco should pursue in order to increase cash flow and achieve growth in the first place,¡± he said. ¡°That¡¯s the discussion I want to have with the execution side. If we conclude that an alliance is needed to achieve that direction, then we will proceed with one.¡±
Yokoo, who spoke at a media conference in Tokyo, will join Tepco from the government-backed Japan Investment Corp., where he is chief executive officer. His leadership will likely be tested on whether he can secure partners that can both enhance corporate value and help offset financial burdens such as the decommissioning of the Fukushima No. 1 nuclear power plant, the facility that suffered a meltdown after the 2011 earthquake and tsunami.
Tepco booked a ?903 billion ($5.7 billion) charge last year for its decommissioning efforts at Fukushima and has said it needs to raise funds to continue the process. It has also said it needs investment to meet rising electricity demand from data centers used for artificial intelligence.
In a milestone development, Tepco restarted a reactor at its Kashiwazaki Kariwa nuclear power plant this year, although the process was interrupted by an electrical issue. Under its January plan, the utility is aiming to sell around ?200 billion of assets within three years.
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