Kobe Steel

Last updated
Kobe Steel, Ltd.
Native name
株式会社神戸製鋼所
Type Public KK
TYO: 5406
OSE: 5406
NAG: 5406
Nikkei 225 Component
Industry Steel
FoundedKobe, Japan
(September 1, 1905;115 years ago (1905-09-01))
Headquarters2-4, Wakinohama-Kaigandori 2-chome, Chūō-ku, Kobe, Hyōgo, 651-8585, Japan
Key people
Mitsugu Yamaguchi, (CEO and President)
Products
Revenue $ 15.87 billion (FY 2016) (¥ 1.696 trillion) (FY 2016)
$ -216 million (FY 2016) (¥ -23.045 billion) (FY 2016)
Total assets $ 2.233 billion (as of March 31, 2019)
Number of employees
39,341 (consolidated) (as of March 31, 2019)
Website Official website
Footnotes /references
[1] [2]

Kobe Steel, Ltd. (株式会社神戸製鋼所, Kabushiki-gaisha Kōbe Seikō-sho), operating worldwide under the brand Kobelco, is a major Japanese steel manufacturer headquartered in Chūō-ku, Kobe. Kobe Steel also has a stake in Osaka Titanium Technologies. [3] The company supplies about half of the global market of the wires used in valve springs of auto engines. [4]

Contents

It was formed on September 1, 1905. Its location in a major city port was useful for importing and exporting iron ore and coal. It is one of Kobe's oldest industrial companies. [5] Its main production facilities are Kakogawa Steel Works and Kobe Steel Works. Kobe Steel is the owner of the rugby team Kobelco Steelers.

The company is listed on the Tokyo and Nagoya Stock Exchange, on the Osaka Securities Exchange and is a constituent of the Nikkei 225 stock index. [6] As of March 31, 2019, the company had 218 subsidiary and 52 affiliated companies across Japan, Asia, Europe, the Middle East and the US. [1]

Kobe Steel is a member of the Mitsubishi UFJ Financial Group (MUFJ) keiretsu.

History

Japanese prime minister Shinzō Abe worked at Kobe Steel before entering politics. [5]

In 2016, Kobe Steel lost ¥23 billion due to cheap aluminium and steel imports. [5]

Scandal

In October 2017, Kobe Steel admitted to falsifying data on the strength and durability of its aluminum, copper and steel products. [5] [7] The scandal deepened when the company said it found falsified data on its iron ore powder, which caused its shares to fall 18%. By 11 October, shares had fallen by a third. [5] After testing the parts of their bullet trains, the Central Japan Railway Company announced that 310 components were discovered to contain sub-standard parts supplied by Kobe Steel. [8] [9]

Following further news in October 2017 that car makers Toyota, Nissan, and General Motors, and train manufacturer Hitachi, were among 200 companies affected by the Kobe Steel's mislabelling, which had potential safety implications for their vehicles, the CEO of Kobe Steel conceded that his company now had "zero credibility". [10] Other affected companies include Ford, Boeing and Mitsubishi Heavy Industries. [5] CEO Kawasaki promised to lead an internal investigation. [5] On 13 October 2017, Kobe Steel admitted that the number of companies misled was over 500. [11]

Despite the costs of dealing with the scandal, Kobe Steel issued a revised profit forecast in February 2018 announcing that it expects to generate a net profit of ¥45 billion ($421 million) for the full 2017 fiscal year, marking its first net profit in three years. [12] [13]

Business segments and products

Kobelco crane in Dubreka (Guinea) Pelle a Dubreka.jpg
Kobelco crane in Dubreka (Guinea)

Manufacturing locations

See also

Related Research Articles

Kobe City in Japan

Kobe is the seventh-largest city in Japan and the capital city of Hyōgo Prefecture. It is located on the southern side of the main island of Honshū, on the north shore of Osaka Bay and about 30 km (19 mi) west of Osaka. With a population around 1.5 million, the city is part of the Keihanshin metropolitan area along with Osaka and Kyoto.

Kawasaki Heavy Industries Japanese manufacturing company

Kawasaki Heavy Industries Ltd. (KHI) is a Japanese public multinational corporation primarily known as a manufacturer of motorcycles, engines, heavy equipment, aerospace and defense equipment, rolling stock and ships. It is also active in the production of industrial robots, gas turbines, boilers and other industrial products. The company is named after its founder Shōzō Kawasaki, and has dual headquarters in Chūō, Kobe and Minato, Tokyo.

Hyōgo Prefecture Prefecture of Japan

Hyōgo Prefecture is a prefecture of Japan located in the Kansai region of Honshu. Hyōgo Prefecture has a population of 5,469,762 and has a geographic area of 8,400 square kilometres (3,200 sq mi). Hyōgo Prefecture borders Kyoto Prefecture to the east, Osaka Prefecture to the southeast, and Okayama Prefecture and Tottori Prefecture to the west.

Kakogawa, Hyōgo Special city in Kansai, Japan

Kakogawa is a city located in Hyōgo Prefecture, Japan. The city was founded on June 15, 1950. It is located near the point where the Kako River flows into the Seto Inland Sea.

Takasago, Hyōgo City in Kansai, Japan

Takasago is a city located in Hyōgo Prefecture, Japan. The city was founded on July 1, 1954. It lies between the cities of Kakogawa to the east and Himeji to the west, which is known for its castle.

The Hanshin Industrial Region is one of the largest industrial regions in Japan. Its name comes from the on-reading of the kanji used to abbreviate the names of Osaka (大阪) and Kobe (神戸), the two largest cities in the megalopolis. The GDP of this area is $341 billion, one of the world's most productive regions. 2014 Osaka and Kyoto's GDP per capita (PPP) was US$35,902.

Allegheny Technologies American materials company

Allegheny Technologies Incorporated (ATI) is a specialty metals company headquartered at Six PPG Place in Pittsburgh, Pennsylvania.

Kubota

Kubota Corporation is a tractor and heavy equipment manufacturer based in Osaka, Japan. One of its notable contributions was to the construction of the Solar Ark. The company was established in 1890.

This article covers the development of the industry in the Empire of Japan, during the rise of statism in the first part of the Shōwa era.

Japanese Industrial Standards

Japanese Industrial Standards (JIS) are the standards used for industrial activities in Japan, coordinated by the Japanese Industrial Standards Committee (JISC) and published by the Japanese Standards Association (JSA). The JISC is composed of many nationwide committees and plays a vital role in standardizing activities across Japan.

Ube Industries, Ltd. is a Japanese chemical company manufacturing chemicals, plastics, battery materials, pharmaceuticals, cement, construction materials, and machinery.

Hitachi Zosen Corporation Japanese engineering company

Hitachi Zosen Corporation is a major Japanese industrial and engineering corporation. It produces waste treatment plants, industrial plants, precision machinery, industrial machinery, steel mill process equipment, steel structures, construction machinery, Tunnel boring machines, and power plants. Despite its name, Hitachi Shipbuilding no longer builds ships, having spun this business off in 2002.

Osaka Titanium Technologies

Osaka Titanium Technologies Co., Ltd. is a Japanese non-ferrous metal manufacturing company based in Amagasaki, Hyōgo Prefecture, Japan. It is the world's second largest producer of titanium sponge after VSMPO-Avisma.

Toyo Seikan

Toyo Seikan Group Holdings, Ltd. is a Japan-based packaging container manufacturing company.

Furukawa Electric Co., Ltd. is a Japanese electric and electronics equipment company.

Mitsubishi Materials

Mitsubishi Materials Corporation, or MMC, is a Japanese company. It is a manufacturer of cement products, copper and aluminum products, cemented carbide tools, and electronic materials. It is one of the core companies of Mitsubishi Group.

Nippon Steel Japanese steelmaker

Nippon Steel Corporation, was formed in 2012 by the merger of the old Nippon Steel and Sumitomo Metal. The old Nippon Steel Corporation was established in 1970 by the merger of Fuji Iron & Steel and Yawata Iron & Steel.

Kakogawa Steel Works

Kakogawa Steel Works is Kobe Steel, Ltd.'s ironworks in Kakogawa, Hyogo, Japan, established in 1969. It is responsible for about 80 percent of the company's iron and steel production.

References

  1. 1 2 "Corporate Profile". Kobelco.co.jp. Retrieved April 13, 2014.
  2. "Consolidated Financial Results for Fiscal 2012" (PDF). Kobelco.co.jp. Retrieved April 13, 2014.
  3. "Key events". Osaka Titanium Technologies . Retrieved 15 August 2011.
  4. Inajima, Tsuyoshi; Stapczynski, Stephen (12 Oct 2017). "Kobe Steel Scandal Expands Into Core Business Overseas". Bloomberg. Retrieved 21 October 2017.
  5. 1 2 3 4 5 6 7 "Kobe Steel admits falsifying data on 20,000 tonnes of metal". The Economist . 12 October 2017.
  6. "Components:Nikkei Stock Average". Nikkei Inc. Retrieved April 13, 2014.
  7. "Kobe Steel's Falsified Data Is Another Blow to Japan's Reputation". The New York Times . Retrieved 10 October 2017.
  8. "Bullet Train Parts Failed Quality Tests: Steel Scandal Deepens". Bloomberg News . Retrieved 11 October 2017.
  9. "Kobe Steel scandal deepens over quality of products used in cars and aircraft". The Guardian . Retrieved 11 October 2017.
  10. McCurry, Justin (12 October 2017). "Kobe Steel chief admits scandal has hit trust as car checks spread". The Guardian . Retrieved 12 October 2017.
  11. McLain, Sean; Tsuneoka, Chieko (2017-10-13). "Kobe Steel Admits 500 Companies Misled in Scandal". Wall Street Journal. ISSN   0099-9660 . Retrieved 2017-10-13.
  12. Obayashi, Yuka (2018-02-01). "Japan steelmakers' profits surge; Kobe Steel reinstates forecast". Reuters. Retrieved 2018-02-26.
  13. "Kobe Steel expects net profit for fiscal 2017 despite data fabrication scandal". The Japan Times. 2018-02-02. Retrieved 2018-02-26.
  14. "Business Activities". Kobelco.co.jo. Retrieved April 13, 2014.
  15. "Facts & Figures Report 2012" (PDF). Archived from the original (PDF) on December 3, 2012. Retrieved April 13, 2014.
  16. "Kobe Precision Introduces Copper Wafer Recycling Process". Laboratory Network.com. July 14, 1999. Retrieved April 13, 2014.