Progress of the Measures Promoted by the Kobe Steel Group to Prevent Recurrence of the Misconduct

May 11, 2020

Kobe Steel, Ltd.

Kobe Steel, Ltd. made public a report entitled Report on Misconduct in Kobe Steel Group (the “Report”) dated March 6, 2018 on the facts revealed in the Independent Investigation Committee’s investigation, analyses of the causes of the misconduct, and measures to prevent recurrence. To implement the various measures raised in the Report, Kobe Steel’s President as the leader launched the Project for Restoring Trust in April 2018. Various subcommittees and task forces were formed to implement the preventive measures, and concrete actions are currently being carried out. These activities have been and will continue to be monitored by the Quality Management Committee established in April 2019 as an advisory body to the Board of Directors.

Official certifications previously canceled or temporarily suspended were restored in fiscal 2019 (excluding one case where recertification is not planned due to demand trends and other factors).

This update provides the latest progress of the measures to prevent recurrence of the misconduct following the previous update announced on November 6, 2019. We plan to announce the progress of the measures biannually via our website.

  • This document is a summary of the progress of the measures to prevent recurrence of the misconduct.
  • Additional details are available in the supplementary material.
  • The underlined portions below have been updated from the November 6, 2019 announcement.

1. Governance – Building the Quality Governance System

2. Management – Ensuring Quality Control

3. Process – Strengthening of Quality Control Processes

In order to promote the points below, we established the KOBELCO Quality Guidelines of the Kobe Steel Group. The Guidelines went into effect on May 1, 2018.

We will continuously monitor improvements at each location and confirm the on-site application of the Guidelines through quality audits at each location.

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