Toshiba [TOSYY:JP] has announced the sale of its liquified natural gas division to Chinese gas producer ENN Ecological Holdings [2688:HK] to stabilize their business model, according to an announcement reported by Nikkei on November 8. Toshiba is expected to be dealt a USD880m loss on the sale.
In 2013, Toshiba entered the LNG market with the purchase of equity to LNG plant business based in the US. Their goal was to sell 2.2m tons of LNG for 20 years starting in 2019. ENN supplies and trades gas and operates pipelines across China and has total annual sales of gas amounting to around 19.6bn cu. m. The move to purchase the Toshiba Texas division diversifies its holdings. Toshiba has also announced plans to pull out of a U.K. nuclear powerplant and sell its profitable chip business to mitigate losses from its bankrupt US nuclear power business. Despite all their losses, Toshiba plans to invest JPY810bn into long-term growth industries like lithium-ion batteries, and Internet of Things (IoT) components.