Toyota shares falls after Kan Asks Chubu Electric To Shut Nuclear Power Plant image

Toyoyta fell in Tokyo trading after Prime Minister Naoto Kan asked Chubu Electric Power Co. to shut a nuclear power plant that provides electricity for several of the carmaker’s factories.

Prime Minister Naoto Kan has urged Chubu to close the Hamaoka plant, about 200 km (120 miles) southwest of Tokyo, signalling a potential shift in energy policy following the worst nuclear crisis in 25 years.

Chubu Electric Power Co shares tumbled as much as 14 percent on the request. Chubu was due to hold a board meeting at 0630 GMT at which it was expected to make a final decision to close the plant, Japanese media said.

The central Japan utility is widely expected to agree to the request, Japanese media reported.
The spokesman said the news conference will go ahead even if the board does not reach a decision on the request by Prime Minister Naoto Kan, which was spurred by concerns about the effect on the plant if there is a major earthquake in the Hamaoka area.

Chubu Electric serves central Japan, including Aichi prefecture where Toyota operates 12 car and component factories. Suppliers to Toyota, including Denso Corp. (6902) and Aisin Seiki Co. are also based in the prefecture, and fell 1.6 percent and 1.5 percent respectively.