JIS certifications suspended at Kobe Steel’s Chofu Works

December 5, 2017

Kobe Steel, Ltd.

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

In regard to the improper conduct in the Kobe Steel Group, we underwent an examination by JIS certification bodies. As problems were found in the quality management system at Kobe Steel’s Aluminum Extrusion & Fabrication Plant at Chofu Works, we received today a suspension notice of our Japanese Industrial Standards (JIS) certifications for this facility.

Due to the suspension of the JIS certifications, the Aluminum Extrusion & Fabrication Plant at Chofu Works is unable to ship the concerned products displayed with the JIS mark. However, the plant can supply products that are equivalent to JIS in terms of performance. Responding in sincerity, Kobe Steel will contact and explain the situation to customers to which the concerned products were shipped.

In relation to the improper conduct in the Kobe Steel Group, Kobe Steel announced on November 10, 2017 that it had compiled the “Report on investigation into the causes of the Kobe Steel Group’s inappropriate conducts and on measures to prevent recurrence.” The Quality Assurance Department was also established in the Aluminum & Copper Business on November 10, 2017 and is under the direct control of that business unit. The Quality Assurance Department carries out audit functions for quality control and quality maintenance and is responsible for related training at each business location and group company in the Aluminum & Copper segment.

At Chofu Works on the same date, the quality control function and the quality assurance function were clearly separated. Quality assurance sections, as independent organizations, are under the direct control of the general manager of Chofu Works in order to strengthen the quality control check function.

In addition, in order to prevent falsification and fabrication in inspection procedures, the Kobe Steel Group will promote the implementation of the automatic recording of test inspection data. For test inspection data that cannot be automatically captured, a system will be established whereby a single-person process is eliminated and data is always checked by multiple people.

Based on the findings in a report to be made by the Independent Investigation Committee, which consists only of outside members, Kobe Steel will then proceed to consider various measures, which will be reflected in its final measures to prevent recurrence.

The Kobe Steel Group will steadily implement measures to prevent recurrence and correct the problems that led to the quality management deficiencies, which caused the suspension of the JIS certifications. The Kobe Steel Group aims to restore its JIS certifications and recover the trust of its customers as quickly as possible.

The impact of this incident on Kobe Steel’s business performance is unclear at this time. Kobe Steel plans to make an announcement when the extent of the impact becomes clear.

Details on disciplinary action: JIS Marking System

Certificate holders:
Aluminum Extrusion & Fabrication Plant at Kobe Steel’s Chofu Works
Light Metals Extrusion Development Co., Ltd.
(A portion of the processing is outsourced to this company’s plant. This company is a 29.2% owned affiliate of Kobe Steel.)
Certification body:
JIC Quality Assurance Ltd. (JICQA)
Certificate number:
QA0607023
JIS numbers & products:
JIS H4040 aluminum and aluminum alloy bars and wires
JIS H4080 aluminum and aluminum alloy seamless tubes
JIS H4100 aluminum and aluminum alloy extruded shapes
Disciplinary action:
Suspension of above JIS certifications

Outline of the Aluminum Extrusion & Fabrication Plant at Kobe Steel’s Chofu Works

Location:
14-1 Chofu Minatomachi, Shimonoseki, Yamaguchi, Japan
Business:
Manufacture of aluminum and aluminum alloy extruded products and fabricated products
Sales:

323.3 billion yen (fiscal 2016, Aluminum & Copper segment)


(Products of the Aluminum Extrusion & Fabrication Plant displayed with the JIS mark comprise approximately 1% of the total sales of the Aluminum & Copper segment.)

For reference: Disciplinary action taken on JIS mark certifications to date

Certificate holder:
Hatano Plant of Kobelco & Material Copper Tube Co., Ltd.
Certification body:
Japan Quality Assurance Organization (JQA)
Certificate numbers:
JQ0307066 (canceled on October 26, 2017)
JQ0305001 (canceled on November 15, 2017)
JIS numbers & products:
JIS H3300 copper and copper alloy seamless tubes
(canceled on October 26, 2017)
JIS H3330 insulated copper tubes
(canceled on November 15, 2017)

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