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Factbox: Kobe Steel's data fabrication leaves 'Made-in-Japan' champions scrambling
October 13, 2017 / 9:59 AM / 2 months ago

Factbox: Kobe Steel's data fabrication leaves 'Made-in-Japan' champions scrambling

TOKYO (Reuters) - The revelation that Japan’s third-biggest steelmaker Kobe Steel Ltd (5406.T) fabricated data for some of its aluminum and copper and other products has left affected manufacturers scrambling to pin down the potential impact.

Kobe Steel President and CEO Hiroya Kawasaki (C) and the company officials leave a news conference in Tokyo, Japan October 13, 2017. REUTERS/Kim Kyung-Hoon

The products were shipped to around 500 companies which include some of the world’s most recognizable names.

The following lists companies that have received falsely certified parts or are checking whether they have received them. Listed also are companies included in media reports, where Reuters has not been able to confirm the status.

BOEING

Boeing Co (BA.N), the world’s biggest maker of passenger jets, has used Kobe Steel 5406.T products that include those falsely certified by the Japanese company, a source with knowledge of the matter told Reuters. nL4N1MN3HF

AIRBUS

Airbus (AIR.PA) does not buy products directly from Japan’s Kobe Steel but is investigating whether any of its suppliers are affected by the cheating scandal, an Airbus spokesman said. The Nikkei newspaper had reported earlier that the aircraft maker had received Kobe Steel products with falsified specifications.

TOYOTA

Toyota Motor Corp (7203.T), Japan’s largest automaker, said the compliance breach was a “grave issue”, adding that Kobe Steel’s products were used in vehicle doors and hoods.

NISSAN

Doors and hoods were also affected at Nissan Motor Co (7201.T), a spokesman said.

The automaker is grappling with its own compliance failures, recalling all new cars sold in Japan in the last three years after discovering final vehicle inspections were not performed by authorized technicians.

HONDA, SUBARU

Honda Motor Co (7267.T) said doors and hoods were affected, while Subaru Corp (7270.T) said vehicles and aircraft were affected.

Japanese industry ministry officials said Kobe Steel materials were used in some defense equipment made by Subaru.

Other automakers affected by Kobe Steel’s announcement are Mazda Motor Corp (7261.T) and Mitsubishi Motors Corp (7211.T), the companies confirmed.

MITSUBISHI HEAVY

Mitsubishi Heavy Industries (7011.T) said Kobe Steel products were used on its Mitsubishi Regional Jet and rockets, including the H-2A rocket launched on Oct. 10 to put a navigation satellite into orbit. The rocket cleared all safety checks before launch, the company said.

Japanese industry ministry officials said Kobe Steel materials were used in some defense equipment made by Mitsubishi Heavy.

IHI

Heavy machinery maker IHI Corp (7013.T) said affected products were used in its jet engines.

IHI is a supplier for engines used on Boeing Co (BA.N) aircraft and in Japan’s defense and aerospace industries. The company did not say which engines used the affected products.

Japanese industry ministry officials said Kobe Steel materials were used in some defense equipment made by IHI.

KAWASAKI HEAVY

Kawasaki Heavy Industries Ltd (7012.T) said affected materials were used in airplane parts and airplane engine parts while it was still investigating to see if there were any other products including trains that used affected materials.

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

JR TOKAI

Central Japan Railway Company (JR Tokai) (9022.T), which operates the bullet train line between Tokyo and Osaka, said falsely certified products from Kobe Steel were used in some train undercarriages. The products do not pose a safety risk and will be replaced.

JR WEST

West Japan Railway (9021.T) said it has affected parts from Kobe Steel that were falsely certified and will seek compensation from the steelmaker.

TEPCO

Fukushima nuclear operator Tokyo Electric Power (9501.T) (Tepco) said on Oct. 13 it had taken delivery of pipes from Kobe Steel that were not checked properly. The pipes were delivered to its Fukushima Daini station, located near the destroyed Fukushima Daiichi plant, but have not been used, Tepco said. Tepco was checking all its facilities.

DAIMLER

Daimler AG (DAIGn.DE) said on Oct. 13 that Kobe Steel is not a supplier after the Nikkei business daily reported the same day that it had received products from the steelmaker with falsified specifications.

PSA GROUP

PSA Group (PEUP.PA) also said on Oct. 13 that Kobe Steel is not a supplier after the Nikkei reported it had also received products from the steelmaker with falsified specifications.

The Nikkei also said the following companies have been supplied with Kobe Steel products with faked specifications.

A Kobe Steel spokesman told Reuters the companies had all received parts and components originating from the steelmaker but did not confirm whether they had been tampered with.

The companies are listed below by sector, separated between Japanese and non-Japanese companies.

Denso Corp (6902.T), Suzuki Motor (7269.T), Yamaha Motor (7272.T), Sumitomo Wiring Systems, Takata Corp, Fujitsu (6702.T), Yazaki Corp.

Tesla (TSLA.O), General Motors (GM.N), Renault (RENA.PA), Hyundai Motor (005380.KS), Daimler (DAIGn.DE), Valeo (VLOF.PA) and Volvo (VOLVb.ST).

Shimadzu Corp (7701.T), Mitsui Engineering & Shipbuilding (7003.T), NEC Corp (6701.T), Yokohama Rubber (5101.T), Komatsu (6301.T).

General Electric (GE.N), Rolls-Royce (RR.L), Korean Air Lines (003490.KS).

Daikin Industries (6367.T), Panasonic (6752.T), Mitsubishi Electric (6503.T), Hitachi Ltd (6501.T), Toshiba Corp (6502.T), Horiba Ltd (6856.T), Nidec Corp (6594.T).

Intel Corp (INTC.O)

East Japan Railway (9020.T), Tokyo Metro Co and Hankyu Railway (9042.T)

Reporting by Sam Nussey, Yuka Obayashi, Osamu Tsukimori; Editing by Shri Navaratnam

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