Data Problems Found for 22 More Products at Ube Industries

June 7, 2018

Tokyo- Ube Industries Ltd. said Thursday that quality data fabrications and other irregularities have been found for 22 more items, on top of earlier announced polyethylene products and limestone aggregates.

To clarify management responsibility, its president, Yuzuru Yamamoto, will not receive his executive salary for one month. Five other executives will have their pay cut by 30 pct or 60 pct for one month, the company said.

According to a report by an investigative panel of lawyers and an outside board director, irregularities were newly discovered for resin and limestone products manufactured by Ube Industries and group firms.

Sales of the affected products totaled 16 billion yen in fiscal 2017, accounting for 2.3 pct of all sales at the Ube Industries group in the year through March.

The number of client companies that received supplies of affected products increased by 62 to 113.

The report said that the irregularities occurred because the company regarded quality guarantee work as being of low status.

The company also announced the establishment of a quality control headquarters as part of measures to prevent any recurrence of similar problems. Jiji Press