Carbon fibre composite materials maker Toray Industries too falls afoul Japan Inc’s quality scandal widens further

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Tokyo, Nov. 29: Japan’s Toray Industries on Tuesday revealed 149 cases of quality data falsification at a materials- making subsidiary spanning eight years, in the latest qualityassurance scandal to hit a Japanese manufacturer.

The world’s largest maker of carbon fibre composite materials said the cheating involved products including tirestrengthening cords sold to 13 clients by Toray Hybrid Cord. A broader probe into possible wrongdoing across the group was ongoing.

Toray did not name any affected customers but ruled out US aircraft maker Boeing, for which the Japanese company is a major supplier of carbon fibre used in passenger jets, and Uniqlo parent Fast Retailing, which uses its products in its best- selling Heattech clothing line.

Japanese companies are facing growing pressure to disclose quality- assurance failings after widespread data falsification was uncovered at Kobe Steel.

Toray said its subsidiary became aware of its problems in July last year, and the group learnt of them in October.

It only decided to publicly disclose the cheating after rumors appeared earlier this month in an anonymous online post.

“There were no legal violations or safety problems; this was between us and our customers, and so there was no need to disclose it,” Toray president Akihiro Nikkaku told a news conference.

The internet post forced the company to “give a proper explanation before rumors spread”, Mr Nikkaku said, adding that even if similar cases were found in the future the company would not be required to make them public.

The comments are likely to fuel concerns about Japanese manufacturers’ governance and their commitment to stamp out cheating.

Last week Mitsubishi Materials admitted that it may have sent products with falsified data to scores of customers, and possibly continued to ship these products for months after the wrongdoing was discovered. Automakers Nissan Motor and Subaru have also been hit by compliance scandals.

The admissions threaten to damage trust in Japan’s manufacturing industry at a time of growing competition from its Asian neighbors such as China and South Korea.

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