Mitsubishi Materials shares slide on data fraud scandal

Mitsubishi Materials shares slid Friday following news of data fraud at the manufacturer published by the firm, Thursday.

Mitsubishi Materials shares slide on data fraud scandal

Japan’s corporate image was hit again this week, as Mitsubishi Materials admitted it had discovered wide spread data fraud within its company. Mitsubishi Materials shares ended the Asian trading session 8.07% lower on the news.

Mitsubishi Materials issued a news release on its website Thursday, detailing the issue.

The news comes as Kobe Steel is still reeling from the discovery that many of its sites were subject to data fraud regarding the safety checks on its final approved materials.

Mitsubishi data falsification

“Mitsubishi Materials Corporation (MMC) has discovered that certain products manufactured and sold by Mitsubishi Cable Industries Ltd and Mitsubishi Shindo Co. Ltd, both of which are considered subsidiaries of MMC, deviated from customer standards or internal company specifications due to misconduct, including the rewriting of inspection records data,” Mitsubishi Materials said in a release on its website.

“At the outset we sincerely apologize for aby problems and difficulties that this matter has caused to all concerned parties. MMC and all of our group companies are strengthening out quality control framework and working on remedial measures to prevent recurrence of these issues,” it added.

Despite the clear detail and apologetic tone, MMC also admitted they discovered data fraud as early as February this year.

The data falsification relates to around 300 products supplied to the car, electric and aerospace industries.

Japanese Minister of Economy Disappointed

Japan’s Minister of Economy, Trade and Industry, commented on the latest scandal to it Japan’s industrial sector. According to Reuters, Hiroshige Seko said Friday this latest report of company misconduct, “a betrayal of trust in Japanese manufacturing.”

He was pointedly disappointed with the amount of time its taken MMC to come forward to disclose the data falsification.

MMC, meanwhile, is as yet unsure over what the financial implication of the data fraud will be. The company is setting up a task force to investigate every aspect of the wrongdoing. It will also work to implement improvements and avoid a repeat incident

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