Update on safety verification status concerning improper conduct in the Kobe Steel Group

November 7, 2017

Kobe Steel, Ltd.

At this time, we once again deeply apologize for the enormous amount of trouble we have caused to our customers, suppliers, shareholders and many others concerning the improper conduct in Kobe Steel, Ltd. and its group companies.

On October 26 and October 31, 2017, Kobe Steel reported on the verification status of the safety of its nonconforming products used in customers' products. Today (as of November 7), Kobe Steel reports on the progress it has made on the verification.

Verification status of safety of nonconforming products used in customers' products (as of November 7)

(1) Customers' responses at present

For customers to whom nonconforming products, which the Kobe Steel Group found in its self-investigation over the past one year, were shipped and for products other than those delivered directly to customers, the use of these products has been stopped. In addition, at this time Kobe Steel has not confirmed cases that would require immediate product recall.

(2) Current progress of safety verification

Owing to the enormous amount of cooperation from its customers, the Kobe Steel Group is earnestly proceeding to verify the safety of the nonconforming products. At this time as outlined in Table 1, the Kobe Steel Group delivered nonconforming products to 525 companies. Out of this total, safety confirmation is proceeding at 470 companies under the three levels below, from A to C.

Safety verification by level

  • A: Customers have completed safety verification.
  • B: Customers have concluded that no problems exist at this time, but continue further verification.
  • C: Kobe Steel has concluded that safety can be assumed with a high degree of certainty from its technical opinion and has informed customers to this effect.

Table 1

Improper
product
Company name Material Main use No. of
customers
A B C Total
(A-C)
Aluminum
& Copper
Aluminum &
Copper Business,
Kobe Steel, Ltd.
(October 8, 2017)
Aluminum
sheets
Can stock
Cars
57 29 5 0 34
Aluminum
cast &
forged
parts
Aircraft
Rolling stock
67 1 66 0 67
Aluminum
extrusions
Cars
Rolling stock
34 15 14 0 29
Copper
sheets
Semiconductors
Terminals
38 8 5 0 13
Kobelco & Materials Copper
Tube Co., Ltd.
(October 8 and 26, 2017)
Copper
tubes
Air conditioning 23 17 6 0 23
Shinko Metal Products Co., Ltd.
(October 13, 2017)
Copper
alloy tubes,
Molds
Electrical
machinery
Steelmaking
equipment
176 109 9 56 174
Domestic subsidiary: 1
Overseas subsidiaries: 31
(October 13, 2017)
Copper
tubes
Copper
strips
Aluminum
wires
Air conditioning
Terminals
36 21 2 13 36
Other Kobelco Research Institute, Inc.
(October 11, 2017)
Target
materials
FPD optical disks 70 70 0 0 70
Steel Powder Division, Iron &
Steel Business, Kobe Steel, Ltd.
(October 11, 2017)
Steel
powder
Sintered parts 1 0 1 0 1
Domestic subsidiaries, etc.: 2
Overseas subsidiaries, etc.: 22
(October 13, 2017)
Steel wire
Stainless
steel wire
Bearings
Springs
22 22 0 0 22
Shinko Kohan Kako, Ltd.
(October 20, 2017)
Heavy plate
processing
Heavy plate
processed
products
1 0 1 0 1
Total 525 292 109 69 470
Previous report (October 31) 525 252 90 101 443
Initial report (October 26) 525 229 91 117 437
  • *Total number of customers

  • 1. Shinko Aluminum Wire Co., Ltd., Kobelco & Materials Copper Tube (M) Sdn. Bhd., Kobelco & Materials Copper Tube (Thailand) Co., Ltd., Suzhou Kobe Copper Technology Co., Ltd.

  • 2. Nippon Koshuha Steel Co., Ltd., Shinko Wire Stainless Company, Ltd., Jiangyin Sugita Fasten Spring Wire Co., Ltd., Kobelco Spring Wire (Foshan) Co., Ltd.

  • 3. Changes in the number of companies reported on October 31 are underlined.

In order to complete the safety verification at an early time, Kobe Steel will whole-heartedly devote itself to cooperating with its customers in the verification.

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