📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

Japan government wants to get actively involved in Kobe Steel issue: trade minister

Published 10/20/2017, 12:27 AM
© Reuters. FILE PHOTO: A man walks past the signboard of Kobe Steel at the group's Tokyo headquarters in Tokyo
5406
-

TOKYO (Reuters) - The Japanese government wants to get actively involved in the issue of Kobe Steel's (T:5406) data fabrications, Hiroshige Seko, the minister of economy, trade and industry, said on Friday, as the company's widespread misconduct has sent a chill along global supply chains.

Kobe Steel, Japan's third-biggest steelmaker, admitted earlier this month that it had falsified specifications on the strength and durability of its products. The falsifications stretch back for more than 10 years, a senior executive told Reuters.

"This is a problem between companies, but we want to be actively involved in the issues," Seko told a news conference, adding that he hoped Kobe Steel would take proper and prompt actions to remedy the situation.

Japan's Transport Minister Keiichi Ishii also urged the company to investigate the falsifications and take proper prevention measures.

"It was extremely regrettable," Ishii told a news conference on Friday.

"We want the company to take measures to make sure that it complies with laws and reinforces safety management," he said.

The ministry has also asked Kobe Steel's customers to ensure the safety of automobiles and planes.

No safety problems have surfaced as Kobe Steel attempts to confirm the extent of the data tampering. But in Europe, aviation safety authorities earlier this week issued a directive advising aircraft manufacturers to avoid using Kobe Steel products if they can until checks are completed.

Four Japanese automakers on Thursday said they found no safety issues with aluminum parts supplied by Kobe Steel, allaying some concerns that falsified quality data on products from the steelmaker had compromised their vehicles.

© Reuters. FILE PHOTO: A man walks past the signboard of Kobe Steel at the group's Tokyo headquarters in Tokyo

Nonetheless, the company's fate hangs in the balance while checks are being carried out. It must report to Japan's industry ministry by around the end of next week on any safety concerns and provide a more extensive account of the problems a fortnight later.

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.