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Kobe Steel Scandal Goes Beyond The Borders Of Japan

Years of satisfied use and effortless maintenance will be enjoyed by homes that used aluminium in Thai for their windows and doors. Because of its flexibility, strength and durability, aluminiumis extensively used in many OEM products like automotive parts, electronic products and building construction. Curtain walls made from aluminium can be seen in some buildings and store fronts.

Revelations of a cheating scandal has plunged Kobe Steel Ltd, a leading Japanese steelmaker into crisis. Shares of the embattled steelmaker have skidded to 5-year lows as investors fear financial and legal fallout. According to Hiroya Kawasaki, Chief Executive of Kobe Steel, 500 companies received false certifications of products.

The scale of misconduct wiped about $1.8 billion off the market value of its shares last week. The revelation of widespread wrongdoing sent warning signs throughout the supply chain all over the world from companies to automakers including the operators of Japan’s bullet trains and the biggest aircraft manufacturer Boeing. The effects of the falsified certification of products have gone beyond the shores of Japan to its subsidiaries in Thailand, China and Malaysia.

So far no safety problems have resurfaced while Kobe Steel gets a grip on the scandal of data tampering. According to an initial statement from Kobe Steel, 200 companies were affected with the falsified data regarding aluminium and copper products that are widely used in the manufacture of cars, aircraft, space rockets and defence equipment. Kawasaki has promised to compensate companies that will be affected by the falsified certifications.

Kobe has been investing in the upgrade of its facilities in the areas that have been most hit by the revelation which is the aluminium production.  The company has plans to spend about 55 billion Yen for the expansion of its aluminium facilities due to increasing demand fromcar makers.

Aluminium is lighter in weight than other metals and meets stricter environmental regulations. More and more companies are using aluminium in Thai today than at any point of its history as a metal product. Aluminium is the sustainable product that the rest of the world believes to be a solution for a fuel efficient future.

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