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2017/12/12 Quality of Our Products

We, KOBELCO STEEL TUBE CO., LTD. (“KST”), deeply apologize again for the enormous amount of trouble caused to you in connection with the improper conducts arose in Kobe Steel, Ltd. (“KSL”) and its group companies.

1. Results of self-inspection and emergency audit

After the improper conducts were discovered in the Aluminum & Copper Business of KSL at the end of August (which were publicly announced in KSL’s news release on October 8, 2017), “self-inspection in KST” and “emergency audit by KSL” have been urgently proceeded with the products shipped from September 2016 to August 2017 and those investigations have been completed in KST.

With respect to the products of KST which are subject to the self-inspection and emergency audit, we have not discovered any improper conducts.

2. Re-verifying appropriateness and suitability of the emergency inspection results

The “Independent Investigation Committee”, established by KSL on October 26, 2017, will re-verify the appropriateness and suitability of the methods, content and other factors in the self-inspection and emergency inspection. Conclusions from the Independent Investigation Committee are expected before the end of the year.

3. Acceptance of JIS certification maintenance

In regard to the improper conducts in the KSL and its group companies, we underwent the certification maintenance surveillance by Japan Industrial Standards (“JIS”) certification body, JIC Quality Assurance Ltd. (“JICQA”), in this November. As no problem was found, on December 12, we received an acceptance notice from JICQA because our products were confirmed to fulfill all requirements specified in applicable JIS.

< JIS number & products>
・JIS G 3446 Stainless steel pipes for machine and structural purposes
・JIS G 3459 Stainless steel pipes
・JIS G 3463 Stainless steel boiler and heat exchanger tubes

We will make continuous effort to maintain and improve our quality assurance system.