Toshiba Plans To Build Supply Chain For Offshore Wind Turbines In Japan: Report

Japan's Toshiba Corp. TOSBF reportedly plans to establish a supply chain for offshore wind power equipment in the country with U.S. manufacturer General Electric Company GE.

The partners will develop components for production, soliciting smaller companies in Japan's northwest (including Akita and Niigata prefectures) that have conditions suited for offshore wind power, Nikkei reported.

Orders for a project in Akita prefecture are due to start as early as 2028, the report noted. 

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Toshiba is targeting 2026 for domestic production of wind turbines, bringing together a supply chain for nacelles, Nikkei added. A nacelle is a streamlined container for aircraft parts (engines, fuel, equipment, among others).

Nikkei added that companies competent in delivering nacelle components will be appointed, with procurement to start in fiscal 2025.

Toshiba expects to coordinate with about 100 smaller suppliers, the report read. 

Price Action: GE shares are trading lower by 0.02% to $110.26 in the premarket session on the last check Monday.