Toshiba, Doosan to team on nuclear plants-sources

(Adds company comments, rewrites throughout)

By Noriyuki Hirata

TOKYO, Aug 26 (Reuters) - Japan's Toshiba Corp and South Korea's Doosan Heavy Industries & Construction will work together to build nuclear reactors to keep pace with demand, sources close to the matter said on Tuesday.

Doosan would provide know-how on pressurised water reactors to Toshiba and Toshiba supplier IHI Corp . In return, Toshiba and its U.S. nuclear unit Westinghouse would use Doosan's equipment in nuclear plants, company sources said.

Doosan, which won an order from Westinghouse in June, is also expected to supply Westinghouse with equipment for nuclear plants in China, the sources said. IHI, which holds a 3 percent stake in Westinghouse, has been tapped to make pressure vessels for Toshiba and Westinghouse nuclear plants.

Toshiba and Doosan have agreed to discuss how to work together on establishing a supply chain for nuclear plants, but nothing has been decided, said Toshiba spokesman Ken Shinjo.

IHI also said that the three were in talks but that nothing was decided.

Toshiba hopes to win 33 orders for nuclear reactors worldwide by 2015, as concerns about global warming and rising fuel costs boost demand for nuclear energy worldwide.

It competes against General Electric Co , which has teamed up with Hitachi Ltd , and France's Areva , an ally of Mitsubishi Heavy Industries Ltd .

Shares of Toshiba closed down 0.8 percent at 640 yen and IHI closed down 3.1 percent at 191 yen, against the benchmark Nikkei average's .N225 0.8 percent fall. Doosan closed up 0.5 percent at 93,000 won per share, while the market fell 0.8 percent. (Additional reporting by Mayumi Negishi and Sachi Izumi; Editing by Chris Gallagher/Editing by Rory Channing)