TOKYO (Reuters) - Kobe Steel Ltd shares tumbled a further 16 percent on
Wednesday after it admitted it may have fabricated data on iron powder products
and media
reported the possible sale of its real estate business.
The latest disclosure comes after Japan’s No.3 steelmaker said on the
weekend it had falsified data to show that its aluminum and copper products had
met customer specifications, and suggests the problems could be widespread.
Japanese manufacturers were thrown into turmoil by the revelation, with
implications for materials used in cars, aircraft and possibly a space rocket
and defense equipment.
Shares in Kobe Steel were down 15.73 percent at 900 yen as of 0114 GMT on
Wednesday, underperforming the broader market which was steady. They fell 22
percent the previous day.
A Kobe Steel spokesman confirmed a report on Wednesday in the Yomiuri
newspaper saying the firm may have fabricated data on iron powder products used
in components such as automotive gears. He said the company was investigating
the issue.
The Nikkei business daily meanwhile reported that Kobe Steel intended to
put its real estate business on the block in an effort to shore up already
shaky finances now threatened by the data falsification scandal.
The Kobe Steel spokesman said he could not comment on that report.
Kobe’s data fabrication problems are the latest in a series of industrial
missteps undermining Japan’s reputation for high-quality production.
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