October 11, 2017
Kobe Steel, Ltd.
At this time, Kobe Steel, Ltd. deeply apologizes again for the considerable trouble caused to suppliers, shareholders and many others about the improper conduct concerning a portion of its aluminum and copper products.
As described in the announcement “Improper conduct concerning a portion of the aluminum and copper products manufactured by Kobe Steel” dated October 8, 2017, Kobe Steel is currently undertaking an investigation of the facts pertaining to the improper conduct in the Aluminum & Copper Business. Kobe Steel is also conducting an investigation as to whether or not similar improper conducts exist in its other business units.
In regard to this, the investigation by the outside law firm, which was commissioned by the investigation committee on quality issues, is still not completed. Kobe Steel plans to make a report on the results once the investigation is completed. With respect to a portion of the investigation currently being undertaken, Kobe Steel reports that a similar kind of improper conduct (hereinafter referred to as “improper conduct”) has been confirmed.
The product discovered at this time to be subject to improper conduct (hereinafter referred to as “nonconforming product”) is outlined below:
Improper rewriting of inspection data of a product outside the compact density agreed with the customer
Although the investigation being conducted by the outside law firm is still not completed, Kobe Steel’s opinion is as follows:
The subject steel powder is pressed by the customer and processed (molded) into a part. Afterwards, the part undergoes heat treatment to become the final product. During pressing, steel powder with a high compact density is easy to mold. Due to the increased strength of the sintered part, this product is generally regarded as a high-performance product. As the steel powder outside the specifications is on the high-quality side, the effect on product performance is believed to be low.
Not conducting tests agreed with customers and the improper rewriting of inspection data with regard to products outside the component values agreed with customers
Although the investigation being conducted by the outside law firm is still not completed, Kobe Steel’s opinion follows below. With regard to most of the subject materials, samples that had been stored underwent re-inspection. As a result, Kobe Steel believes the products are within the specifications agreed with the customers.
The Kobe Steel Group has been strengthening its quality control system through the Group. In November 2016, Kobe Steel established Quality Management Section in the MONODZUKURI (Production System Innovation) Planning and Promotion Department) in its head office. In April 2017, the Quality Management System began quality audits in the Group companies. During that inspection, improper conduct was discovered in the target materials made by Kobelco Research Institute, Inc.
With regard to the nonconforming products, Kobe Steel, with the outside law firm, conducted technical verifications with respect to the effect on quality (including safety) of the nonconforming products used in the customers’ products. Verification and investigation to date have not recognized specific problems casting doubts on the safety of any of the nonconforming products. In the event that doubts arise on the safety of the nonconforming products, Kobe Steel will quickly take appropriate action.