Quality Test Fraud Found at Hitachi Metals
Tokyo, April 28 (Jiji Press)--Hitachi Metals Ltd. <5486> has been found to have falsified quality test results for specialty steel and other products, and submitted inspection reports including the manipulated data to client companies.
The malpractice started more than 10 years ago, the major subsidiary of Japanese machinery giant Hitachi Ltd. <6501> said Monday.
About 170 companies have bought the products, including specialty steel for auto parts and magnets used in motors for home appliances.
Hitachi Metals will set up a special committee comprising outside experts to thoroughly look into the issue. The investigation panel will come up with a report in several months.
The company had conducted an in-house probe after being informed in January of suspected test data manipulation for specialty steel.
[Copyright The Jiji Press, Ltd.]