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

January 19, 2018

Kobe Steel, Ltd.

We once again deeply apologize for the considerable 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 at this time (as of January 19).

After this release, Kobe Steel plans to issue an update when a certain amount of progress has been achieved in safety verification.

Verification status of safety of nonconforming products used in customers' products (as of January 19)

(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 510 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 36 15 0 51
Aluminum
cast &
forged
parts
Aircraft
Rolling stock
67 4 63 0 67
Aluminum
extrusions
Cars
Rolling stock
34 23 9 0 32
Copper
sheets
Semiconductors
Terminals
38 15 16 0 31
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
176 165 4 7 176
Domestic subsidiary: 1
Overseas subsidiaries: 31
(October 13, 2017)
Copper
tubes
Copper
strips
Aluminum
wires
Air conditioning
Terminals
36 24 9 3 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 1 0 0 1
Total 525 377 123 10 510
Previous report (December 22) 525 362 127 16 505
Initial report (October 26) 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 December 22 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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