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UPDATE 1-Kobe Steel loses JIS certifications, faces lawsuits in Canada

Published 2017-12-08, 02:26 a/m
© Reuters.  UPDATE 1-Kobe Steel loses JIS certifications, faces lawsuits in Canada

* Kobe Steel says Moka aluminium plant loses JIS certification

* JIS revoked at Kobe Steel copper unit

* Four individuals in Canada sue Kobe Steel, units for damages

TOKYO, Dec 8 (Reuters) - Kobe Steel Ltd's 5406.T Japanese Industrial Standards (JIS) certifications were suspended at its Moka aluminium and aluminium alloy plant, the company said in a statement on Friday.

Kobe, Japan's third-largest steelmaker, also said that the JIS certifications at its Shinko Metal Products have been revoked for copper and copper alloy seamless pipes because the plant shipped products that had not undergone proper dimensional measurements.

Kobe supplies the manufacturers of cars, planes, trains and other products across the world. It has said that about 500 of its customers had received products with falsified specifications, in one of Japan's biggest industrial scandals.

The company has also had JIS certifications suspended at its aluminium extrusion plant in Chofu and revoked at its Hatano plant. on Friday, Kobe said that four individuals in Canada who bought cars that use the company's products have filed lawsuits against Kobe and its units at the Supreme Court of British Columbia and the Ontario Superior Court of Justice seeking unspecified damages.

The plaintiffs are seeking to make the case a class-action lawsuit, the company said. Kobe added that there is a possibility of similar lawsuits being filed and that the impact to its businesses was unclear.

Kobe Steel said that despite losing the JIS certification, it can supply products that are equivalent to the standards in quality.

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The company said it would aim to regain JIS certification at those plants in the future.

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