Kobe blames poor controls and profit focus for data breach

Kobe Steel is Japan's third largest steelmaker

Japan's Kobe Steel has blamed a lack of controls and a focus on profits for the faking of data on the quality of some of its products.

The company said it would automate more of its operations and reorganise its quality control systems.

The announcements came in a report that was published following a government-ordered internal investigation.

Last month, Kobe admitted falsifying the strength and durability of some of its products for about a decade.

Kobe, which is Japan's third-biggest steel maker, supplies car, plane and train makers including Boeing, Toyota and Nissan.

It said 474 out of 525 affected customers had found no safety issues, or their products had been found safe by Kobe Steel,

"Improving our management and corporate governance and instilling a culture where employees can say anything are imperative," said Kobe's chief executive, Hiroya Kawasaki.

"This is my utmost priority and I will work on these with unflagging resolve."

Multiple workers and managers at nine production sites were involved in faking the data, according to the report.

• Kobe Steel scraps profit forecast

• About 500 firms affected by steel scandal

Last week, Kobe Steel withdrew its full-year profit guidance due to uncertainty about the cost of the data falsification scandal.

It said it was "difficult at this time to estimate the impact of the improper conduct concerning products of Kobe Steel and its group companies on business performance".

Kobe Steel's shares have fallen by about a fifth since it revealed the data fabrication.

Japan's Ministry of Economy, Trade and Industry told Kobe to launch an investigation into how the data scandal came about and what the company was going to do to prevent similar behaviour in the future.

Kobe has also appointed outside investigators who are set to release their report by the end of the year.