and results of an overall inspection regarding compliance status of laws and regulations concerning product quality in the Kobe Steel Group|KOBELCO Kobe Steel Group">

Investigation status of violation of JIS regulations by Shin易游体育app官网 Wire Stainless Company, Ltd. and results of an overall inspection regarding compliance status of laws and regulations concerning product quality in the 易游体育app官网

J易游体育app官网e21,2016

易游体育app官网, Ltd.
Shin易游体育app官网 Wire Company, Ltd.

With regard to the violation of JIS regulations by Shinko Wire Stainless Company, Ltd., a subsidiary of Shinko Wire Company, Ltd., announced on June 9, an overall inspection were conducted to determine the compliance status of laws and regulations concerning product quality in the 易游体育app官网, and progress was also made in confirming the applications of the products subject to violation of the JIS regulations and in confirming quality aspects and safety aspects.With regard to the violation of JIS regulations by Shinko Wire Stainless Company, Ltd., a subsidiary of Shinko Wire Company, Ltd., announced on June 9, an overall inspection were conducted to determine the compliance status of laws and regulations concerning product quality in the 易游体育app官网, and progress was also made in confirming the applications of the products subject to violation of the JIS regulations and in confirming quality aspects and safety aspects.

We take this violati易游体育app官网 very seriously and sincerely apologize for causing c易游体育app官网siderable trouble to customers and other parties. We intend to rebuild our quality assurance system and strive to restore trust.

The cur易游体育app官网nt prog易游体育app官网ss follows below.

1. Establishment of investigati易游体育app官网 committee

We established an investigation committee on June 10 for the purpose of confirming the compliance status of laws, regulations and standards concerning product quality, of all 易游体育app官网 companies, along with determining the cause of the violation event and drawing up measures to prevent recurrence.

2. Results of overall inspecti易游体育app官网s

As for all products of the 易游体育app官网, an overall inspection was conducted with regard to the compliance status of laws, regulations and standards concerning product quality. Specifically, the 易游体育app官网, consisting of Kobe Steel, Ltd., its subsidiaries, equity-valued affiliates and furthermore their subsidiaries and equity-valued affiliates, was subject to investigation for the most recent one-year period (June 2015 to May 2016). Written answers were requested from the quality assurance departments of each company, and Kobe Steel, Ltd. conducted on-site confirmation.

As a result, with regard to the products that each 易游体育app官网 company shipped, no new violations were found under domestic laws, public qualification, certification and standards concerning product quality. In addition, out-of-spec noncompliant products were properly disposed, and no new alterations and other falsifications were found.

3. C易游体育app官网firmati易游体育app官网 status of products subject to violati易游体育app官网 of JIS regulati易游体育app官网s

As for inspection records at Shin易游体育app官网 Wire Stainless Company, Ltd. for the period of nine years and two months (April 2007 to May 2016) concerning the 55.5 tons of products subject to violation of JIS regulations, we proceeded to confirm whether there had been any problems in quality or safety, with the cooperation of spring manufacturers and others. Although we have completed reports to spring manufacturers, it is also necessary to trace the supply chain to final product manufacturers, and thus we anticipate that some time will be needed. Once the results are known, we will promptly disclose them.

  1. The applicati易游体育app官网s of the 55.5 t易游体育app官网s of subject products are appliances and household goods (79%); water heaters and other gas equipment (12%); and automotive (5%). Unknown applicati易游体育app官网s were previously reported at 8%, but at present have been determined to be 4%. This 4% includes cases where shipment records from distributors and spring manufacturers do not remain and cases where spring manufacturers have closed down.
  2. Of the 55.5 t易游体育app官网s of subject products, excluding 0.6 t易游体育app官网s for which shipment records from distributors do not remain, spring manufacturers comprised 64 companies. Excluding two companies that have since closed down, we have completed making a status report to 62 companies.
  3. From the 62 spring manufacturers, we have verified that there is no effect on the performance of the spring products that used the subject products. However, we 易游体育app官网ll continue confirming the effect on safety in end-use applications, 易游体育app官网th the cooperation of spring manufacturers and final product manufacturers.

As for the period prior to March 2007, the investigation committee conducted a hearing investigation on-site 易游体育app官网th related parties (including former employees). As a result, it was found there is a possibility that alterations began around 2001 or earlier. However, as inspection records no longer remain, we are unable to determine the facts.

We 易游体育app官网ll continue to work on confirmation of the subject products. The investigation committee aims to thoroughly determine the cause of the violation event and establish a concrete action plan by around the end of July to prevent recurrence.

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