Indulgent Culture of Kobelco

The third largest steelmaker in Japan, Kobe Steel, internationally known as Kobelco, announced that it faked data about the strength of its products. They include the metallic parts for cars, trains or airplanes. It was proved that tens of supervisors intensively fabricated the data, indicating organized deceit against the interest of its clients. Some people remember that Prime Minister Shinzo Abe once worked for the company.

Kobelco has suffered from a scandal last year when fake data of stainless wire for spring by one of the companies in Kobelco group was revealed. New scandal now is made by Kobelco itself. The company shipped its products made of aluminum or copper with faked data of strength or size. Its clients that received those wrong products amounted to 200, including Toyota Motors or Mitsubishi Heavy Industry.

Total amount of those products within a year before this August goes up to 20 thousand tons, which occupies 4% of all annual shipping of aluminum and copper. They were shipped from four factories in Mo-oka in Tochigi, Chofu in Yamaguchi, Daian in Mie and Hadano in Kanagawa. Some cases were proved to have been continuing for ten or more years.

Seven major carmakers in Japan reconfirmed that they used those wrong products for their cars. While each carmaker has made its own examination for the cars before shipping, they hope recalls to be unnecessary. H2A rocket #36, that was successful in launching earlier this month, used the parts with wrong data. According to Tokai Railway Company, those parts were installed in the device for supporting axle of the bullet train on Tokaido Line. Four heavy industries reported to government of Japan that wrong Kobelco products were used for military equipments of Self-defense Force.

The products with wrong data increased last week as Kobelco promoted internal investigation about the scandal. It was found that one of those products included the copper-alloyed plumbing in Second Fukushima Nuclear Plant. President of Kobelco, Hiroya Kawasaki, apologized about the scandal five days after the first news was publicized. “I apologize about causing inconvenience for our clients and consumers,” told Kawasaki in a press conference. As he revealed his intention to compensate for the cost its clients suffered, stock price of Kobelco declined in Tokyo market.

It is likely that Kobelco’s quality check has long been insufficient. Prime Minister Abe introduced an episode that he made wrong shipping of the products based on mistaken data of order, when he was a freshman of Kobelco. “Although I was afraid of being fired, it did not happen,” described Abe. Some people realized that the indulgent culture of the company has been remaining from that time.