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Kobe Steel scandal - Crisis deepens as plant breach of industrial law

Steel News - Published on Mon, 23 Oct 2017

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Reuters reported that One of Kobe Steel Ltd’s copper plants was being inspected for a possible breach of industrial standards, the government said on Friday, while the company said it was investigating reports it continued shipping products after discovering widespread tampering of product data.

The inspection by the Japan Quality Assurance Organization started on October 19th 2017, a company spokesman told Reuters. The industry ministry said the inspection was being carried out at a copper tube plant at Hatano, southwest of Tokyo.

If the company’s products fail to meet industrial standards set by the government, it would be a breach of law, deepening the crisis at Japan’s embattled third-largest steelmaker. Until now, the company had said products it sold with falsified data met safety and other standards but did not meet contract specifications agreed with customers.

The company is now subject to a US Justice Department probe while checks continue at hundreds of its clients involved in complex supply chains spanning the globe.

Global automakers, aircraft companies and other manufacturers have scrambled to identify potential hazards in their products because of the falsification.

The company has said no illegality had been found related to the data fabrication and no safety issues have yet been reported.

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Posted By : Nanda Koijam on Mon, 23 Oct 2017
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