Relations with Customers and Business Partners

To maintain the trust of our customers and business partners, and to ensure that we supply products and services that provide complete customer satisfaction, the Kobe Steel Group has achieved widespread ISO 9000 series certification for quality management systems and pursues thorough quality control. We are committed to quickly responding to the diverse needs of our customers. For the latest information concerning the status of our ISO 9000 series certification, please click here.

Iron and Steel Sector

Quality Assurance

Strengthening our Quality Assurance System In response to a number of issues related to product quality in the steel industry, Kobe Steel's Iron and Steel Sector is pursuing the following policies in accordance with guidelines established by the Japan Iron and Steel Federation: 1) improving the reliability of test data obtained in steel plants; 2) ensuring the autonomy of departments that issue mill certificates; and 3) strengthening quality control functions for the Group as a whole. Also, to accommodate the need for an increased number and variety of test samples that have accompanied the increased specialization of steel products, we are building more specimen processing equpment and heat treatment furnaces as part of an ongoing effort to create a testing system geared toward reliable quality assurance.

	New Quality Assurance System for Products Aimed at the Automotive Industry

Kobe Steel's Kakogawa Works is working to convert to new quality assurance systems for its automotive products, including ISO/TS 16949:2002, New JIS, and Lloyd's Register MQS. ISO/TS16949 in particular is used as a tool for management-by-objectives requirements, performance evaluations, and improvements, as part of an organization-wide effort to improve quality management.

	Recipient of the 2nd Hyogo Monozukuri Technology Award

The Steel Casting & Forging Division's quality control efforts were recognized by the Governor of Hyogo Prefecture in March 2009 when it received the 2nd Hyogo Monozukuri Technology Award. Specifically, the award was given for the development of a high-quality, highly productive manufacturing method for low-speed diesel engine crankshafts utilizing cast steel. In this and many other ways, Kobe Steel is using proprietary technologies and creative solutions in the never-ending pursuit of better quality control.

Working to Enhance Customer Satisfaction

	Operating a System that Responds Quickly to Customer Requests

The Iron and Steel Sector operates a Japanese website through which we provide quick answers to requests and inquiries received from customers concerning our many iron and steel products. The website has proven very effective in our efforts to provide explanatory information concerning new products and technologies. To enhance customer service still further, we provide technical services that provide timely responses to customer inquiries. This function has four operating centers in Japan and five abroad (in North America, China and Southeast Asia), enabling us to respond quickly on a global basis.

	Technical Exchange Meetings in the Shipbuilding and Construction Fields

Kobe Steel sponsors regular meetings with shipbuilders, construction companies, design companies and manufacturers to provide a forum for the introduction of new products and technologies. Through these exchanges of technical information, we can pursue technologies that match customer needs and engage in joint research focused on such areas as new product development and proposals for more rational solutions for building steel structures. In fiscal 2008, we held more than 20 meetings. To encourage customers to use our products, we also provide customers with suggestions about such things as how they can improve their processing methods and equipment for greater efficiency and safety.

Cooperation with Business Partners

	Materials Purchasing System Starts Up

In April 2008, a new materials purchasing system began operation at Kobe Steel's Kakogawa Works. The new system permits us to exchange information with business partners in data form, while providing other functions that streamline our operations and improve quality. With regard to environmental preservation, we are also cooperating with business partners in an effort to switch over to Eco Mark products for the office supplies and consumables we use.

	JIS Certification for Nippon Koshuha Reinstated In September 2008, Nippon Koshuha Steel Co., Ltd. (a member of the Kobe Steel Group) received notification that JIS certification had been cancelled for some of its products, including high-speed tool steel shipped from its Toyama Works. This cancellation was the result of a comprehensive inspection conducted under the direction of the Ministry of Economy, Trade and Industry that checked compliance with all laws and ordinances regarding product quality, as well as all types of product quality standards. It was discovered through this inspection that tests for hardness that are required for JIS certification had not been performed. We would like to take this opportunity to sincerely apologize to our customers and all others concerned for the inconvenience and worry that this lapse caused. We have already restructured our quality management system at the Toyama Works, and as of February 2009 had acquired New JIS certification for four products. We will continue our efforts to provide customers with products of the very highest quality.

Welding Company

Assuring Quality and Product Safety

Kobe Steel's Welding Company listens closely to customers and promotes inter-divisional communication. Committed to polishing our technical capabilities and creating a safe daily working environment for our employees, we pursue safe manufacturing practices that reassure and satisfy our customers.

	Customer Support Centers Create Kobelco Fans

The Welding Company operates customer support centers that provide our customers and business partners with technical support. We also provide on-the-job training for all members of our nationwide sales network, comprised of companies belonging to the Shinyokai, Kobe Steel's welding association, and hold welding contests, technical tutorials for certification tests, and study groups aimed at strengthening our technical and sales capabilities. The ultimate goal of this technical support is to nurture trust and reassurance among our customers and business partners. To this end we also hold technical exchange meetings to introduce new products and processes to customers. This support, tailored closely to customer needs, is how we build a base of "Kobelco fans."

	Welding Demonstrations

We operate two vans, one in western Japan and one in eastern Japan, equipped with everything needed to conduct welding demonstrations. The demonstrations have proven very popular among customers who find it easy to understand the welding process when it's performed right before their eyes.

	Shinyokai Supporter Certification System

In 2004, the Welding Company initiated the Shinyokai Supporter Certification System, through which approximately 1,400 welders throughout Japan have been certified through practical and written welding tests. This program was originally slated to end in 2008, but it was extended another three years in response to strong demand among association members. We will continue to pursue our goal of further improving the technical proficiency of welders who use Kobelco products.

	Shanghai Office receives Liaoning Province Specialist Award of Distinction

Toshiharu Maruyama, the head of the Welding Company's Shanghai Office, was awarded the 2008 Liaoning Province Specialist Award of Distinction by the government of Liaoning, China. This is the highest award granted by the province for non-Chinese specialists who contribute to the province's economic and social development. Recommended by Fushun Mechanical Equipment Manufacturing Co., Ltd., Mr. Maruyama was one of 29 non-Chinese, including five Japanese, who received this prestigious award in 2008.

Toshiharu Maruyama receives the 2008 Liaoning Province Specialist Award of Distinction

Aluminum and Copper Company

Quality Management System (QMS) Operates in Business Units

Kobe Steel's Aluminum & Copper Company has established Quality Management Systems (QMS) for each of its business units (aluminum flat rolled products, aluminum castings and forgings, aluminum extrusions, copper sheet and copper tube). These systems help us to intensify our QMS activities in acqcordance with the special characteristics of each type of product. In addition, we work in conjunction with our customers to develop and improve our products with the aim of increasing customer satisfaction.

	Certified by Global Quality Systems in Numerous Fields

The Aluminum and Copper Company is active in the automotive, aerospace and shipbuilding fields, and has received global certification in all of them, including ISO/TS 16949, ISO 9001, JIS Q 9100, NADCAP, Boeing, GE and ship registry companies. We continue our commitment to product quality control that is internationally recognized in a wide range of industries. * NADCAP (National Aerospace and Defense Contractors Accreditation Program) is a certification program developed by the Performance Review Institute of the United States. It is the only fully integrated certification program in the world and has become the global standard for certifying the specialized processes used in aerospace industries.

	Technical Exchange in Thailand and Malaysia to Achieve Same Global Quality Standard

Kobelco & Materials Copper Tube, Ltd. is actively engaged in technical exchange and support provided by its main production facility, the Hatano Plant, directed toward plants operating in Thailand and Malaysia. In fiscal 2008, the entire Group worked toward achieving global quality consistency, a longstanding issue that is particularly focused on uncoiling LWC from an ETS position. * ETS: Short for "Eye to the Sky," this is a registered trademark belonging to Kobelco & Materials Copper Tube, Ltd. It refers to a new way to handle level wound coil (LWC) and gets its name from the fact that, when seen from above, coils placed with their rolled side up look like eyes. ETS enables coils to be unwound from the inside without using a wooden reel. Its use by pipe processing companies results in lower plant and packaging costs, and greater productivity. The use of less packaging material also benefits the environment. * LWC: Short for "level wound coil," this term refers to long copper tube that has been wound in parallel rows around a wooden bobbin. Pipe manufacturers purchase the tube in LWC form, and, after straightening it out using roller straighteners, cut it and process it to make copper tube.

Machinery & Engineering Company

Promoting Early-Stage Product Quality Monitoring Activities

Kobe Steel's Machinery & Engineering Company creates a dedicated early-stage quality monitoring team at its Standard Compressor Plant for every type of compressor that is being newly introduced to the market. This team provides intensive product-quality support over a specified period of time. The evaluative information acquired as a result of the team's activity is immediately shared with all departments in the plant, as well as with Kobelco Compressors Corporation and designated service plants. In this way we ensure thorough feedback that helps us improve existing products and develop new ones, permitting us to deliver higher quality.

	SteamStar Screw-Type Compact Steam Energy Generator Receives the Grand Prix of the 2009 Nikkei BP Technology Awards

The SteamStar compact generator, which was jointly developed by the Machinery & Engineering Company, Kobe Steel's Technical Development Group, Shinsho Corporation, Shinko Engineering Co., Ltd., and TLV Co., Ltd., has been hailed for its high-performance, energy-efficient operation. It has received numerous awards, including the Grand Prix of the 2009 Nikkei BP Technology Awards. The SteamStar is a screw-type generator that uses exhaust steam produced by factories and waste incineration facilities to generate electricity, thus contributing to better energy efficiency and lower CO2 emissions. It is an excellent example of the Kobe Steel Group's strength in skilled manufacturing aimed at benefiting our customers.

Representatives of the SteamStar development team receive the Grand Prix at the awards ceremony.

Group Companies

	Kobelco Eco-Solutions Co., Ltd. Maintenance Seminars for Process Equipment

The Customer Service Dept. of Kobelco Eco-Solutions Co., Ltd. provides technical services, emergency support, and maintenance services. To further improve after-sales services, it also holds maintenance seminars for customers three times a year at its Harima Plant. Upon request, maintenance personnel will also visit customer locations to hold seminars as a means of further bolstering customer satisfaction.

	Kobelco Cranes Co., Ltd. Using the Internet to Better Gauge Customer Opinion

To better reflect customer input, the Customer Support Dept. of Kobelco Cranes Co., Ltd. uses the Internet in addition to visiting customers. Its website features different access points for different categories of inquiries, including questions concerning new machines, used machines, parts, and technical information. In this way we collect detailed information on what customers really think. In Japan, the company offers IT controllers as standard equipment and studies how customers actually use the cranes, enabling a quantified grasp of such parameters as load and utilization rates. This information is then used in the design of next-generation products.

	Kobelco Construction Machinery Co., Ltd. Improving Distribution and Packaging Reduce Costs, Help the Environment

Working in cooperation with business partners, Kobelco Construction Machinery Co., Ltd. initiated a project in February 2009 dedicated to improving distribution and packaging practices. Steps taken include reducing CO2 emissions by optimizing distribution routes, improving load efficiency, implementing modal shifts; and reducing the use of packaging materials through such means as optimized packaging and utilizing reusable pallets.

	Kobelco Research Institute, Inc. Using Customer Satisfaction Surveys Throughout the Company

As part of its quality management activities based on ISO9001, the Sales Division of Kobelo Research Institute, Inc. conducts customer satisfaction surveys. Twice a year, the results are processed statistically, subjected to trend management, and reported to a company-wide management review, where they are used to help determine future policies and company directions. The survey results are also studied by each department at monthly quality meetings. In addition to the activities of the Sales Division, other divisions and operating locations pursue their own quality management activities, the results of which are also discussed at the quality meetings.

Other Activities

Procurement Regulations

Kobe Steel has established basic procedures as part of its procurement regulations that govern such aspects as the proposal and implementation of purchasing plans and the signing of contracts. The regulations stipulate that "when engaging in procurement, full consideration must be given to social conditions and demands, environmental protection, resource conservation and other concerns." Every effort is made to deal honestly and fairly with business partners and to support and nurture a relationship of trust, while strictly adhering to all laws, regulations, and social norms. In this way, procurement activities are pursued as correctly and effectively as possible.

Responsible Exporting

Kobe Steel is committed to appropriate and responsible exporting and has formulated company guidelines governing the management of secure trade. In accordance with these guidelines, we practice strict internal control to ensure that we conform with all regulations regarding the export of products that might be used for military purposes. As part of these efforts, we check customer applications in accordance with the Catch-All Control System* adopted by Japan in April 2002. This proactive stance toward security is being disseminated from Kobe Steel itself to all members of the Kobe Steel Group so that each company can implement appropriate export policies as part of a comprehensive trade security system. Similarly, we are educating Group members concerning the RoHS (Restriction of Hazardous Substances) Directive adopted by the EU in July 2006 and taking steps to ensure conformity. While providing our employees with e-learning and other educational opportunities to increase their knowledge level, we continue our efforts to nurture an ongoing sensitivity to changes in international conditions. * Japan's Catch-All Control System restricts the export of any items that are known to be usable in the development of weapons of mass destruction, etc., or any items concerning which notification has been received from the Japanese government.