Kobe Steel Ltd. shares sinks as worries over fabricated data intensifies

US indexes

Kobe Steel Ltd shares plummeted an additional 16 percent on Wednesday following its confession that it may have falsify data on iron power products. As reported in the media, there is a possibility that it may sale their real estate business.

The newest revelation comes after Japan’s no. 3 steelmaker stated on the weekend that it had fabricated data to show that its copper and aluminum products had met customer standards, and implicates that the problems could be widespread.

Manufacturers in Japan were thrusted into disorder by the disclosure of the information, with suggestions for materials mainly used in cars, aircraft and most likely a space rocket and defense equipment.

Kobe Steel Ltd.’s shares plunged 15.73 percent at 900 yen as of 01:14 GMT on Wednesday, performing less than the broader market which was stable. They sunk 22 percent the day before.

A spokesman of Kobe Steel Ltd. asserted a report on Wednesday in the Yomiuri newspaper stating the firm may have invented data on iron power products used in automotive vehicles. The company is conducting its own investigation, he added.

Meanwhile, the Nikkei business daily reported that Kobe Steel Ltd. planned to put its real estate business on sale in an effort to support its already unstable finances now being threatened by the data fabrication scandal.

Kobe’s data falsification scandal is their recent and latest issue of industrial missteps compromised Japan’s reputation for high quality goods and production.

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