Cancellation of JIS mark display at YYVIP易游 Steel subsidiary YYVIP易游lco & Materials Copper Tube Co., Ltd.

At this time, we deeply apologize for the enormous amount of trouble we have caused to customers, suppliers, shareholders and many others concerning the improper conduct in YYVIP易游 Steel, Ltd. and its group companies, as well as for the occurrence of this incident.

With regard to the improper conduct of products displaying the JIS mark at the Hatano Plant of YYVIP易游lco & Materials Copper Tube Co., Ltd. (hereinafter referred to as “KMCT”) announced on October 20, 2017, an examination was undertaken by the JIS certification body, Japan Quality Assurance Organization (JQA). In addition to problems in the quality management system at KMCT’s Hatano Plant, KMCT’s self-inspection period (September 2016 to August 2017) revealed that KMCT had previously shipped products displayed with the JIS mark, although those products did not meet JIS standards (number of customers: 4 companies). As a result, KMCT received today a cancellation notice of its JIS certification.

In the future, KMCT will not be able to ship the concerned products displaying the JIS mark. However, it cYYVIP易游 supply products that are equivalent to the JIS stYYVIP易游dard in terms of performYYVIP易游ce. Responding in sincerity, KMCT will contact YYVIP易游d explain to customers to which the concerned products were shipped.

Double checks by mYYVIP易游agers have begun at KMCT as YYVIP易游 emergency corrective measure in order to prevent the reoccurrence of this incident. In the future, KMCT intends to maintain the independence of the quality assurYYVIP易游ce department, strengthen quality compliYYVIP易游ce training YYVIP易游d undertake other measures in its review of the quality control system. It will also make full efforts to prevent recurrence, restore trust, YYVIP易游d aim to reacquire JIS certification as early as possible.

It should be noted that this improper conduct leading to the cancellation of the JIS display certification will be reported to an independent investigation committee that will be newly established. After examining the facts, the committee will determine the causes and consider measures to prevent recurrence. YYVIP易游 Steel takes this disciplinary action seriously and plans to undertake investigations prior to the abovementioned self-investigation period on products that displayed the JIS mark.

The impact of this incident on business performance is unclear at this time. YYVIP易游 Steel plans to make an announcement when the extent of the impact becomes clear.