GE’s reactor design sees it absorb collateral damage
16 Mar 2011
American multinational conglomerate General Electric found itself hauled into the spotlight in the escalating nuclear crisis at Fukushima, Japan, as the designer of five of the six reactors located at the park. The firm has lost $5.2 billion in market value since Friday, when the crisis began, with shares sliding near 2% on Tuesday hard on the heels of a 2% drop on Monday.
Investors are spooked that GE's association with the Fukushima nuclear reactors could impact subsequent sales of its nuclear equipment.
Market analysts say though GE's exposure to liability from the crisis is minimal, as nuclear plant operators, rather than the designers, are held responsible for accidents, yet concerns have now arisen about the impact of the disaster on future sales of nuclear plants.
There is already a resurgence of the anti-nuclear movement, which had been lying dormant ever since rising demand for alternative sources of energy sparked a revival in the nuclear industry's fortunes.
Five of the six affected reactors at the Fukushima nuclear park are of a 1960s GE design known as Mark 1 boiling-water reactors. American media source ABC quoted one of the three GE designers, forced to step down after controversy enveloped the design 35 years ago, as saying that the reactors remained more susceptible to an accident that might breach the containment vessel, even after being retrofitted.
ABC was talking to Dale G Bridenbaugh, one of the three workers who stepped down about 35 years ago, after controversy flared over the design.
