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

March 23, 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 (collectively, the “Kobe Steel Group”). Regarding the verification status of the safety of customers' products that have used our nonconforming products, Kobe Steel reports on the progress it has made at this time (as of March 23).

Verification status of safety of customers' products that have used nonconforming products (as of March 23)

(1) Customers' responses at present

For customers to whom nonconforming products — which were found through the self-inspections conducted by the Kobe Steel Group and through the investigations by the Independent Investigation Committee (the “IIC”) covering the past one year — were shipped and for products other than those delivered directly to customers, Kobe Steel at this time has not confirmed cases that would require the immediate suspension of use or immediate recall of the products.

(2) Current progress of safety verification

Owing to the enormous amount of cooperation from its customers, the Kobe Steel Group is earnestly proceeding with safety verification. At this time as outlined in Table 1, the safety has been confirmed at 520 companies out of the 525 companies to whom nonconforming products were delivered as announced on October 26, 2017, and 141 companies out of an additional 163 companies identified since the establishment of the IIC on October 26, 2018 as announced on March 6, 2018.

The Kobe Steel Group will continue to wholeheartedly devote itself to cooperating with its customers in order to complete the safety verifications at an early time.

From now on, updates on the safety verifications will be posted on our website when progress is made.

Table 1

As of March 23, 2018

Major category Company name Material Main purpose Announced on
October 26, 2017
Since the IIC's
(October 26, 2017)
No. of customers Safety verification No. of customers Safety verification
Aluminum & Copper Kobe Steel, Ltd. Aluminum &
Copper Business
Aluminum sheets Can stock
57 52 7 7
Aluminum cast & forged parts Aircraft Rolling stock 67 67 4 2
Aluminum extrusions Cars Rolling stock 34 34 - -
Copper sheets Semiconductors
38 38 2 2
Kobelco & Materials Copper Tube, Ltd. Copper tubes Air conditioning 23 23 88 87
Shinko Metal Products Co., Ltd. Copper alloy tubes,
Electrical machinery, Steelmaking equipment 176 176 29 10
Domestic subsidiary: 1
Overseas subsidiaries: 3*2
Copper tubes
Copper strips
Aluminum wires
Air conditioning Terminals 36 36 - -
Shinko Moka Sogo Service Ltd. Aluminum plate Prototype materials - - 1 1
Other Kobelco Research Institute, Inc. Sputtering target materials Prototype alloys FPD
Optical disks Prototype alloys
Corrosion analysis
70 70 14 14
Kobe Steel, Ltd.
Iron & Steel Business Steel Powder Division
Steel powder Sintered parts 1 1 - -
Domestic subsidiaries, etc.: 2
Overseas subsidiaries, etc.: 2*3
Steel wire
Stainless steel wire
Heat treatment
Bearings Springs 22 22 - -
Shinko Kohan Kako, Ltd. Heavy plate processing Heavy plate processed products 1 1 - -
Koshuha All Metal Service Co., Ltd. Heat treatment Heat treatment - - 1 1
Kobe Steel, Ltd.
Machinery Business
Machinery Industrial machinery Standard compressors - - 10 10
Shinko Engineering Co., Ltd. Machinery Industrial machinery - - 3 3
Kobelco Eco-Solutions Co., Ltd. Water analysis Water analysis - - 4 4
Total 525*1 520 163*1 141
Previous report (March 6, 2018) 525*1 520 163*1 129

Changes in the number of companies reported on March 6 are underlined.

  • *1 The 525 customers announced on October 26, 2017 and the 163 customers affected by the Misconduct detected after the establishment of the Independent Investigation Committee are cumulative numbers.

  • *2 Shinko Aluminum Wire Co., Ltd., Kobelco & Materials Copper Tube (M) Sdn. Bhd., Kobelco & Materials Copper Tube (Thailand) Co., Ltd., and Suzhou Kobe Copper Technology Co., Ltd.

  • *3 Nippon Koshuha Steel Co., Ltd., Shinko Wire Stainless Company, Ltd., Jiangyin Sugita Fasten Spring Wire Co., Ltd., and Kobelco Spring Wire (Foshan) Co., Ltd.

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