Photo/IllutrationToshiba Corp.’s head office in Tokyo’s Minato Ward (Asahi Shimbun file photo)

Toshiba Corp. is planning another foray into an overseas nuclear-power industry, forced in part by the disastrous consequences of its previous failure abroad, sources said.

The Tokyo-based company has started negotiations with Energoatom, a Ukrainian state-run power company, to supply turbine generators for use in its nuclear power plants. The two companies concluded a memorandum in October 2017.

Toshiba in March 2017 said it was withdrawing from the business of designing and constructing entire nuclear power plants overseas following the collapse of its U.S. nuclear arm, Westinghouse Electric Co.

However, Toshiba judged that it would not suffer such a huge deficit again if it only supplies equipment to nuclear power plants abroad, the sources said.

“There will be little concern that we will suffer a huge loss (from an overseas deal),” a source related to Toshiba said.

Energoatom operates 15 nuclear reactors and is building two others in Ukraine. It plans to replace the generators of old reactors to increase output.

Toshiba wants to win a deal with Energoatom to export the replacement generators and provide maintenance services after they go into operation.

If Toshiba succeeds in the equipment supply business in Ukraine, it will consider looking at other markets abroad, the sources said.

Toshiba is desperate for a steady source of income.

The company purchased Westinghouse in 2006 for 600 billion yen (about $5.5 billion) to make inroads into the nuclear power business overseas.

The U.S. subsidiary’s main business was designing and constructing nuclear power plants, although it also supplied equipment for such plants.

Westinghouse was building four nuclear reactors in the United States, but the costs ballooned under strengthened U.S. safety regulations following the 2011 Fukushima nuclear disaster.

Westinghouse’s business performance deteriorated, leading to a loss of 1.4 trillion yen by the parent company and plunging Toshiba into a management crisis.

In March 2017, Toshiba announced its withdrawal from the nuclear plant construction business overseas.

“We will block the risks from the business,” the company said.

As a result, Toshiba’s nuclear-related business was reduced to repairs, inspections or decommissioning of reactors. Annual revenue from its nuclear business plummeted by more than 70 percent to under 200 billion yen.

Currently, there are no prospects for the construction of new reactors in Japan, while plans to restart idle reactors have faced a number of hurdles and local opposition. The company now can only expect business for decommissioning work.

So Toshiba began looking overseas to sell equipment and bolster its nuclear power business, the sources said.

Also behind Toshiba’s move was a sense of crisis concerning the planned sale of Toshiba Memory, its semiconductor subsidiary.

Toshiba Memory has accounted for 90 percent of total operating profits of Toshiba and its group companies.

After the sale of the subsidiary, Toshiba plans to earn steady profits from its nuclear business, believing competition with other companies will not be so fierce, the sources said.

But if this endeavor fails to pan out, Toshiba’s management situation could worsen.