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09 OCTOBER 2017 AL CIRCLE

Kobe Steel admits of presenting falsified data on aluminium and copper product shipments

EDITED BY : BEETHIKA BISWAS 2MINS READ

Japanese steel and aluminium product manufacturer Kobe Steel admits through a statement that the company has put forward fabricated data to falsely present that aluminium and copper products met customer specifications.

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The company statement says that about 4 percent of the aluminium and copper products shipped by Kobe Steel from September 2016 to August 2017 were falsely labelled as meeting the specifications requested by customers.  The products were shipped to about 200 companies but they were never certified as meeting exact specifications from clients, as said by a company spokesman. Kobe Steel has admitted the data was about 20,000 tonnes of metals used in aircraft and automobiles. Falsified products included 19,300 tonnes of aluminium plate and extrusions; 2,200 tonnes of copper strip and pipe; and 19,400 cast and forged aluminium parts.

This investigation and findings are related to the latest quality scandal to hit corporate Japan. Corporate Japan has a high reputation for quality but the country has been hit by a series of product quality scandals in recent years.

The company is in the process of contacting their customers to take feedback on the shipped products and has appointed an external law firm to investigate the incident.

“We deeply regret to have caused this serious incident and apologise from the heart for causing so much concern and inconvenience,” said deputy president of Kobe Steel Naoto Umehara.

One of the customers, Mitsubishi Heavy Industries has said that aluminium used in its regional passenger jet was among the falsified shipments. However, they have not yet faced any safety issue in their product. The jet is currently undergoing certification in the US after a troubled development and the delivery of the jet remains on schedule.

Kobe Steel has further added that till date they have not found any instances of the products with the falsified data causing safety problems in any company they were sold to. The company however, assured to take prompt and appropriate actions if there are any safety issues arising from those falsified shipments.

Kobe is currently investigating on whether there was any data fabrication before the period of the latest internal audit. The company has made no comment regarding  the impact of such false reporting on its earning at this point.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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