Spotlight: Kobe Steel's scandal further deepens with more misconduct revealed

Source: Xinhua| 2017-10-20 21:56:35|Editor: Song Lifang
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JAPAN-TOKYO-KOBE STEEL

Kobe Steel Executive Vice President Naoto Umehara (2nd R) attends a press conference in Tokyo, Japan, Oct. 20, 2017. Kobe Steel Ltd. told a press conference on Friday that more of its products were found with fabricated data and some of its employees at managerial positions were found involved in cover-up of the misconduct. (Xinhua/Ma Ping)

TOKYO, Oct. 20 (Xinhua) -- Kobe Steel Ltd. told a press conference on Friday that more of its products were found with fabricated data and some of its employees at managerial positions were found involved in cover-up of the misconduct.

The company admitted that besides aluminum, copper, steel powder and special steels, its thick plates processed at a subsidiary had also been found with fabricated data, though no safety problems have been confirmed.

The steelmaker also said one of its affiliates had been found doctoring Japanese Industrial Standards (JIS) certificates of copper pipes, and the products are currently undergoing reinspection on whether they meet the national standards.

Moreover, it also found that multiple managerial personnel at an aluminum and copper plant were involved in covering up data falsification during an internal probe.

"I once again deeply apologize for causing so much trouble to our clients and stakeholders," said Kobe Steel's Executive Vice President Naoto Umehara.

He admitted that there was still possibility that more improprieties would be found out.

It came to light earlier this month that Kobe Steel had fabricated data on strength and durability of some of its aluminum and copper products.

The company later admitted to also falsifying inspection data on iron powder and nine other products, with problematic products sold to some 500 companies globally.

The misconduct ensnared a wide range of Japanese manufacturers, with problematic products used in cars, aircraft, Shinkansen bullet trains, and even rockets and defense equipment.

The company said in a statement earlier this week that its subsidiary Kobe Steel USA, Inc. had been asked by the U.S. Justice Department to submit documents related to products sold to U.S. customers that had been subjected to data fabrication.

Local media said the investigations could lead to congressional hearings in the United States, as similar hearings were held regarding Takata Corp.'s problematic airbags, which were blamed for more than a dozen deaths.

The scandal followed a series of similar improprieties recently in Japan, with Japan's Nissan Motor Co. saying earlier this month that it will recall more than 1.2 million vehicles which underwent flawed safety inspections.

Nissan Motor Co. said on Thursday that it will suspend shipment of new cars from all of its domestic plants for two weeks after it found out that flawed inspection still carried on after it apologized for the malpractice.

The scandals have cast doubts over corporate governance in the manufacturing industry and beyond in Japan, raising concerns over the quality of the "Made in Japan" brand.

Meanwhile, there have also been rising concerns that the expanding scandals would hurt local economy.

According to a research result released by Tokyo Shoko Research, Ltd. on Friday, Kobe Steel has over 7,000 suppliers across Japan, most of which are small and medium-sized companies, and the predicament of the third largest steelmaker in Japan would seriously impact the operation of its suppliers.

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