Kobe Steel’s Cheating Engulfs More Divisions; Shares Resume Slide

www.oann.com | 10/10/2017 | Staff
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TOKYO (Reuters) – Kobe Steel Ltd said on Friday it has also found cases of false certification in its steel division, the latest in a string of revelations confirming widespread cheating at the firm that has engulfed its multinational clients, including Boeing Co., in a global safety scare.

The bombshell admissions by Japan’s third-largest steel maker sent its shares plummeting again, with the scale of the misconduct dealing a body blow to the nation’s reputation as a high-quality manufacturing destination.

Boeing - Co - World - Maker - Passenger

Boeing Co, the world’s biggest maker of passenger jets, has some of the falsely certified products, a source with knowledge of the matter told Reuters.

The Nikkei newspaper also on Friday said more than 30 non-Japanese customers including Daimler AG and Airbus SE had been affected by the firm’s data fabrication. A Kobe Steel spokesman said the companies received its products but would not confirm they had any of the falsely certified components.

Chief - Executive - Hiroya - Kawasaki - Media

Chief Executive Hiroya Kawasaki will brief media later on Friday, the spokesman told Reuters, as the crisis ripples through supply chains across the world.

The company also confirmed another Nikkei report that it found cases of data tampering in its steel wire products. Customers have said there are no problems with the safety or function of the products, the spokesman said.

Kobe - Steel - Shares - Percent - Morning

Kobe Steel shares were down 8.7 percent by the morning break in trading, after stabilizing on Thursday to close a touch higher. They had fallen nearly 40 percent in the previous two days, wiping about $1.6 billion off the company’s market value.

“It will likely continue to be extremely difficult to make judgments on creditworthiness and investment until...
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