Additional data fraud found at Mitsubishi Materials units

February 9, 2018

Tokyo- Mitsubishi Materials Corp. said Thursday it has found additional cases of product data falsification, involving three of its subsidiaries including two firms where such misconduct was newly detected.

The three are Tokyo-based Mitsubishi Aluminum Co., its aluminum-processing unit, Tachibana Metal Mfg. Co., based in Osaka, western Japan, and auto parts maker Diamet Corp., based in the city of Niigata, central Japan.

Nearly 500 client companies were supplied with products that were affected by the newly found manipulation of product quality data.

In November last year, Mitsubishi Materials announced that Mitsubishi Cable Industries Ltd., Mitsubishi Shindoh Co. and Mitsubishi Aluminum had shipped products after falsifying inspection data to appear as if they satisfied quality standards promised to clients.

After the problem came to light, the parent company conducted its investigation into group companies on whether there were cases of similar misconduct. But Mitsubishi Aluminum and Tachibana Metal were excluded from the follow-through probe, Mitsubishi Materials Executive Vice President Naoki Ono told a press conference to disclose the fresh data falsification scandal.

Misconduct at Diamet could not be detected until Mitsubishi Materials received a tip from an insider in late last month, Ono added.

"We offer a deep apology for the inconvenience to parties concerned," Mitsubishi Materials President Akira Takeuchi said at the news conference.

Asked about the management's responsibility for the data falsification scandal, which has spread to involve five subsidiaries, Takeuchi only said he will make all-out effort to beef up the group's internal control system.

Now that additional data fraud cases have been unearthed, Mitsubishi Materials plans to put off releasing a final report on the problem by its special investigation committee at least until next month, from the end of this month as initially scheduled.

"We must admit that the early-stage investigation was inadequate," Ono said.

According to an interim report by the investigation committee late last year, there were guidelines used by workers at Mitsubishi Cable Industries and Mitsubishi Shindoh to share procedures for data falsification.

Ono said similar guidelines have existed at Mitsubishi Aluminum.

Mitsubishi Aluminum President Akio Hamaji said he believes the guidelines were already at the company before December 2014.

According to Thursday's announcement, quality data on extruded aluminum products were manipulated at a Mitsubishi Aluminum factory in Susono, Shizuoka Prefecture, central Japan, and a Tachibana Metal plant in Yoro in the central prefecture of Gifu.

In addition, they carried out product inspections that did not meet the requirements of the Japanese Industrial Standards.

Affected clients totaled 115 firms for Mitsubishi Aluminum and 307 companies for Tachibana Metal. No safety problems have been raised.

Diamet shipped products with falsified inspection data, manufactured at its main factory, to 73 companies. The safety of the shipped products is currently under investigation. Jiji Press