Kobe Steel president admits possibility of more irregularities

October 12, 2017

TOKYO- Hiroya Kawasaki, president and chairman of Kobe Steel Ltd. now under fire for its products inspection data falsification scandal, admitted Thursday the possibility of more related irregularities coming out in the future.Kawasaki mentioned such possibility when he explained about the scandal at the industry ministry.

He promised that Kobe Steel will carry out an in-house investigation on the matter, while the ministry demanded that the company report the results of the probe in about two weeks.

Speaking to reporters after visiting the ministry, Kawasaki said, "Possibly at the end of October, we'll announce our efforts to find the cause of the irregularities and our preventive measures."

"I'll exercise leadership in overcoming the current difficulties," Kawasaki said, suggesting that he does not intend to step down in the near future to take responsibility for his mismanagement.

He said he will hold a press conference within two weeks to give explanations about the progress of the in-house investigation.

The falsely certified Kobe Steel products are used by a wide range of manufacturers, including those of automobiles, airplanes, Shinkansen bullet train cars and defense hardware.

On Wednesday, Kobe Steel said inspection data falsifications were newly confirmed for iron powder mainly used to make automobile parts and also for optical disc materials produced by a subsidiary, on top of aluminum and copper products already announced.

Kobe Steel Ltd. is set to see its earnings deteriorate in fiscal 2017, as recall costs are likely to soar amid an inspection data falsification scandal that is still unfolding. Jiji Press