ibusinesslines.com
ibusinesslines.com July 16, 2018


Kobe Steel Crisis Deepens As More Data Tampering Revealed; Shares Tumble

12 October 2017, 11:02 | Kelvin Horton

Image Zoom |By Yuka Obayashi

Image Zoom             
                                                            |By Yuka Obayashi

Analysts say the announcement further tarnishes the reputation of Japan's globe-trotting manufacturers, long celebrated for their high-quality products.

Toyota, Nissan, Honda, Mitsubishi Motor, Subaru and Mazda joined aviation firms and defence contractors Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI that have used the steel maker's products.

On Wednesday, Kobe Steel added two more products to the list of affected materials: powdered steel, which is used to create molded steel products like gears, and "target material", a specialty mix of several kinds of metal used in the production of DVDs, television screens and other electronics equipment.

Japan's government sought on Tuesday to contain the fallout from the disclosure by the nation's third-biggest steel maker, Kobe Steel Ltd, that it had fabricated data on components used in cars, aircraft and space rockets, sending shock waves through the Japanese manufacturing sector.

Kobe Steel said late on Wednesday it found 70 cases of tampered data on materials used in optical disks and liquid crystal displays at its Kobelco Research Institute Inc, which makes and tests products for the company. It could also undermine confidence in Prime Minister Shinzo Abe's moves to improve corporate governance as part of his program of Abenomics.

An internal probe carried out since it found issues in its aluminium and copper business has not found other cases of data tampering, Yoshihiko Katsukawa, a managing executive officer at Kobe Steel, told a news conference.

It's not the first time Kobe Steel has been caught up in falsifying data.


Sales at Kobe Steel's aluminium and copper division fell 6.4 percent to 323.3 billion yen ($2.9 billion) in the year to March, and recurring profit dropped by more than a fifth to 12 billion yen. It apologized and said it had appointed lawyers to investigate.

Mr. Tsuge said Central Japan Railway would replace the parts when the affected trains underwent regular inspections, something that happens roughly once a year.

A Kobe spokesman told Reuters the firm is working with customers to check for any issues.

"Boeing has been working closely and continuously with our suppliers since being notified of the issue to ensure timely and appropriate action, including comprehensive inspections and analysis throughout our supply chain", the company said in an email. Kawasaki Heavy Industries and Mitsubishi Heavy Industries (MHI) supply parts to Boeing including for its 777 Dreamliner.

Honda users stated that C column of Civic sedans produced in Turkey was caused by Kobe Steel, while Honda Turkey made a statement about it. There were no technical problems with the components, MHI said.

Meanwhile, Mazda said it used aluminium made by Kobe in auto bonnets.



Other News

Trending Now

Weather looks good for Wednesday sunset SpaceX launch
The rest will keep on being propelled in 10-satellite augmentations throughout the following year, alongside one launch of five. It's the first of two launches the organization intends to endeavor this week on opposite coasts of the US.

Boy Scouts to recruit girls
CEO for the Girl Scouts of Southwest Indiana Aimee Stachura says, "Every organization has competition and that's just part of it". The Girl Scouts of the US have criticized the initiative, saying it strains the century-old bond between the two organizations.

Motorola announces attractive price cut for Moto E4, Moto G5, Moto M, and Moto Z2 Play in India
Buyers of its phones can get up to 100GB extra 4G data for free, but more details in this regard have not been revealed yet. The original price of Moto G5 smartphone is Rs.12,599 and under the Moto Diwali Offer it can be purchased in just Rs.10,999.

Reliance Jio's new plan offers 100 per cent cashback on Rs 399
So if you want to use it for your next recharge of Rs. 399, you will have to pay Rs. 349 via online payment modes. This offer can be bought through any offline retail store, Jio Stores, Apps like Patym, Jio money etc.

Hamas announces reconciliation deal with Palestinian rival Fatah
Palestinian Prime Minister Rami Hamdallah (right) and Hamas chief Ismail Haniyeh hold hands in Gaza City October 2, 2017. Hamas seized Gaza from Fatah in a near civil war in 2007 and the two factions have been at loggerheads ever since.

Pres. Trump Welcomes Canadian PM Trudeau to the White House
Trump administration officials have said they want a deal by December, a timeline that observers say is increasingly unlikely. Mexican Presidential elections and US mid-term elections scheduled for next year threaten to add to tensions in negotiations.

Credit Suisse Maintains Rating And Lowers Price Target On Amazon.com, Inc
It turned negative, as 26 investors sold COHR shares while 115 reduced holdings. 26 funds opened positions while 57 raised stakes. Waldron LP has 0.37% invested in Amazon.com, Inc. "( AMZN )" was first reported by Week Herald and is owned by of Week Herald.