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. Tokyo Electric Power Co., said Friday it had bought a backup duct for a heat exchanger for one of four reactors at one of two nuclear power reactors in northeastern Japan’s Fukushima that narrowly survived the 2011 tsunami despite some damage. TEPCO said in a statement that a Kobe Steel subsidiary, Shinko Metal Products Co., informed it the product came with inappropriate measurement data. There is no concern over safety because the duct was bought as a backup and was not used. TEPCO said it has requested further investigations by Kobe Steel of products shipped to the utility and its subsidiaries. TEPCO is also investigating.
ABC News 13th Oct 2017 read more »
Japan’s Kobe Steel has joined a rather unfortunate “club”. That club’s membership includes those Japanese companies recently racked by scandal and mismanagement. Kobe’s management admitted that its employees faked quality inspection reports on its steel and other metal products used domestically in automobiles, bullet trains and nuclear power stations. So far, corporate announcements have been vague, offering little clarity about the duration of the quality control lapses or, more important, the type of components involved. Tokyo Electric Power Co. (9501.T) just announced that it replaced a Kobe-made piece of equipment, offering no other details. Kobe, however, is a major producer of nuclear power plants components. Even if quality control lapses did not extend to those operations, the onus may be on Kobe to prove its innocence.
Oil Price 14th Oct 2017 read more »