Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Kobe Steel sent products with tampered data to second nuclear company

Published 27/10/2017, 12:01
© Reuters. The logo of Kobe Steel Kobelco is seen at the company headquarters in Kobe

TOKYO (Reuters) - Kobe Steel Ltd (T:5406) supplied parts with false specifications for nuclear equipment owned by Japan Nuclear Fuel Ltd (JNFL), JNFL said on Friday, adding that the products were not used.

The parts were destined for use in centrifuges to enrich uranium, a JNFL spokesman said by phone. Citing security reasons, he declined to provide further details.

Kobe Steel has not told JNFL whether there are any safety issues with the parts, the spokesman said.

A Kobe Steel spokesman confirmed the firm fabricated data about specialised coatings used on the parts and had not identified any safety issues.

JNFL is the second company in the nuclear power industry to receive components affected by the steelmaker's data tampering.

Tokyo Electric Power Co (T:9501) said this month it had taken delivery of pipes from Kobe Steel that were not checked properly.

Japan's atomic regulator has asked nuclear operators to check whether they are using Kobe Steel products at nuclear plants, it said on Wednesday, adding it had received no reports that Kobe Steel's data tampering scandal had affected safety.

No deadline has been given for nuclear operators to report back to the Nuclear Regulation Authority, a spokesman said by phone on Friday.

The unfolding data tampering scandal has spread from Kobe Steel's copper and aluminium business to most areas of the company and sent companies at the end of complex supply chains across the world scrambling to check whether the safety or performance of their products has been compromised.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

While no safety issues have been identified, Japan's third-largest steelmaker is likely to face claims for replacement parts and other costs.

Kawasaki Heavy Industries Ltd (T:7012) would ask Kobe Steel to cover any costs for replacement of parts or other expenses related to the data tampering, President Yoshinori Kanehana told reporters on Friday at an earnings briefing.

The company earlier said affected materials were used in aircraft parts and in engine components. On Friday, Kanehana said it was still checking with customers receiving aircraft, engine and train parts, declining to comment further.

Japanese industry ministry officials have also said Kobe Steel materials were used in some defence equipment made by Kawasaki Heavy.

Asked about the fabrications, Kanehana said "as a company also based in Kobe, this is very regrettable and something that should not have been allowed to happen."

He said Kawasaki Heavy "will consider whether to continue doing business with Kobe Steel after we have seen the results of their investigation into the causes and preventative measures."

Nippon Steel & Sumitomo Metal Corp, (T:5401) Japan's biggest steelmaker, said on Friday it would maintain an alliance it has with Kobe Steel.

The alliance involves cooperating on steel supplies during shortages or maintenance of factories, while Nippon Steel has a 2.95 percent stake in Kobe Steel, with the latter holding 0.71 percent of its bigger rival's shares.

Kobe Steel said on Thursday 88 out of 525 affected customers had yet to confirm its products were safe in the light of widespread tampering of specifications, but that it had not received any requests for recalls.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Japan's third-largest steelmaker supplies manufacturers of cars, planes, trains and other products across the world and the data tampering has spiralled into one of Japan's biggest industrial scandals.

Kobe Steel shares, which are down about 35 percent since the scandal broke, rose 0.6 percent on Friday, while the Nikkei 225 <.225> rose 1.3 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.