The Palm Beach Post

Kobe Steel reports more cases of faked data

- By Elaine Kurtenbach and Mari Yamaguchi

TOKYO — The scandal over product inspection­s data faked by Japanese materials and machinery giant Kobe Steel expanded Friday to include products shipped to more than 500 customers.

Kobe Steel’s president, Hiroya Kawasaki, told reporters the company had uncovered nine more types of products whose inspection­s had been faked or manipulate­d, including copper alloy pipes and molds and steel wire rods used in vehicle tires and engines.

The problems disclosed by Japan’s third-largest steel maker are just the latest in a slew of product quality, accounting and corruption scandals that have dented Japan’s image of superior manufactur­ing prowess.

The latest problems were discovered with shipments of more than 11,000 tons of steel, copper, and aluminum products made by Kobe Steel and its affiliates in Japan, China, Malaysia and Thailand, the company said.

Kawasaki at times appeared close to tears while explaining how it was that the company had chosen not to disclose some of the cases that had been discovered much earlier and discussed at past board meetings.

“Right now, our top priority is to find out the cause and take preventive measures, and to determine if our inadequate products affected our customers,” he said. “I plan to put all my energy into that effort.”

“I’m most troubled by the magnitude and the extent to which this problem has spread,” Kawasaki said.

Kawasaki said he did not expect any product recalls due to the misconduct.

Earlier, the 112-year-old company reported it had discovered bogus inspection­s or faked data for steel powder, aluminum flat-rolled products and castings, copper strips and tubes and forgings.

The exact extent of the problem remains unclear since Kobe Steel has not identified the customers affected. But it is a major supplier to many manufactur­ers, including railways, automakers, aircraft manufactur­ers, semiconduc­tor factories and nuclear power plants.

 ?? AKIKO MATSUSHITA / KYODO NEWS VIA AP ?? Kobe Steel’s President Hiroya Kawasaki apologizes after finding more faked inspection­s.
AKIKO MATSUSHITA / KYODO NEWS VIA AP Kobe Steel’s President Hiroya Kawasaki apologizes after finding more faked inspection­s.

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