Chugoku Electric, JFE Cancel Coal-Fired Power Plant Construction

Economy

Hiroshima, Dec. 27 (Jiji Press)--Chugoku Electric Power Co. <9504> and JFE Steel Corp. said Thursday that they have canceled the planned construction of a coal-fired thermal power plant in the eastern Japan city of Chiba.

The decision comes as the plant is unlikely to make profits due to a rise in construction costs, the companies said.

They are considering whether to construct a natural gas-powered thermal power plant instead.

Under the initial plan, a 1.07-million-kilowatt thermal power plant was to start operations in 2024.

Chugoku Electric and JFE Steel, a unit of JFE Holdings Inc. <5411>, said there will be no major impact on their earnings from the construction cancellation.

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Jiji Press