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Chubu to sue Hitachi over turbine damage -media

TOKYO, Sept 10 (Reuters) - Japan's Chubu Electric Power Co 9502.T is likely to sue Hitachi Ltd 6501.T, seeking damages for the loss of earnings due to problems with a Hitachi-made turbine, a newspaper reported.

Hitachi has said it will bear all the costs for repairing a broken turbine at Chubu’s No. 5 nuclear unit at its Hamaoka plant in western Japan.

But the Asahi newspaper said Chubu had broken off talks with Hitachi talks relating to damages for the unplanned shutdown of its nuclear unit when it had to boost oil purchases to generate sufficient thermal power.

The unit was shut from June 2006 to February 2007.

Japan’s third-biggest electric power company is seeking several tens of billions of yen in compensation and Chubu President Toshio Mita is set to hold a news conference later on Wednesday, the Asahi said.

Chubu spokesman Toshimitsu Shibata said that no decision had been taken to sue Hitachi and that no news conference was scheduled.

Hitachi, Japan's biggest electronics conglomerate, factored in an expected cost of 38 billion yen ($355 million) in the 2006/07 business year to fix the turbines it supplied to Chubu and to Hokuriku Electric Power Co 9505.T.

A Hitachi spokesman said he could not confirm whether Chubu had decided to sue his firm. (Reporting by Risa Maeda and Osamu Tsukimori; Editing by Edwina Gibbs)

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