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

December 1, 2017

Kobe Steel, Ltd.

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. With regard to the verification status of the safety of its nonconforming products used in customers' products, Kobe Steel reports on the progress it has made on the verification at this time (as of December 1).

Verification status of safety of nonconforming products used in customers' products (as of December 1)

(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 has been confirmed at 487 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 in its technical opinion and has informed customers to this effect.

Table 1

Improper
products
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
flat-rolled
products
Can stock
Cars
57 35 7 0 42
Aluminum
cast &
forged
parts
Aircraft
Rolling stock
67 2 65 0 67
Aluminum
extrusions
Cars
Rolling stock
34 18 13 0 31
Copper
sheets
Semiconductors
Terminals
38 9 10 0 19
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
176 157 8 10 175
Domestic subsidiary: 1
Overseas subsidiaries: 31
(October 13, 2017)
Copper
tubes
Copper
strips
Aluminum
wires
Air conditioning
Terminals
36 21 4 11 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 wires
Stainless
steel wires
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 525 351 115 21 487
Previous report (November 24) 525 346 114 24 484
November 17 report 525 329 118 33 480
November 10 report 525 317 111 46 474
November 7 report 525 292 109 69 470
October 31 report 525 252 90 101 443
October 26 report 525 229 91 117 437
  • *Total number of customers

    Notes:
  • 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 November 24 are underlined.

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

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