Photo/IllutrationToshiba Corp. President Satoshi Tsunakawa replies to a question during a news conference in Tokyo on Jan. 27. (Shogo Koshida)

Toshiba Corp. has decided to withdraw from the business of constructing nuclear reactors overseas after forecasting a huge deficit for its U.S. subsidiary in the business year ending in March.

The Tokyo-based electronics appliance maker said Jan. 27 the decision was taken to prevent business deficits from rising sharply again in the future.

“We focused on the nuclear business among all of our energy businesses, but this will change," Toshiba's president, Satoshi Tsunakawa, said in a news conference on Jan. 27. "This will entail a review of our overseas (nuclear) business.”

Toshiba had failed to grasp huge losses that would result from the purchase of a company that was constructing nuclear reactors by its subsidiary, Westinghouse Electric Corp.

Reflecting on that failure, Toshiba plans to strengthen the supervision of its overseas nuclear business by putting related divisions under the direct control of the president.

In the future, Toshiba plans to concentrate only on designing, manufacturing and supplying nuclear reactors. It will withdraw from the reactor construction business because of the difficulties in forecasting construction costs.

“We will eliminate the risk from the construction business,” Tsunakawa said.

Toshiba has aimed to win orders for 45 or more nuclear reactors overseas by fiscal 2030. However, it now plans to review that goal.

The deficit from the nuclear business in the United States is likely to increase to about 700 billion yen ($6.1 billion) in this business year. Toshiba plans to announce the exact amount on Feb. 14 when it releases its financial statement for the period from April to December 2016.