Japan Steel Works admits to faking inspection data on components

A rotor shaft made by Japan Steel Works Ltd. Japan Steel Works Ltd. Japan Steel Works Ltd. JSW, a world leader in casting and forged steel, admitted to more than a quarter-century of faking inspection data on components shipped to electric power plants.

According to the company s announcement on May 9, the data concerned rotor shafts, which are used for turbines and generators at power plants, and retaining rings that fasten the coils of generators.

JSW said no serious operational issues have arisen from the fraudulent data.

JSW said that there was no concrete problem that affects quality and performance.

It is talking to its customers about the possibility of replacing the products.

In fiscal 2021, JSW delivered 524 units of these products, including 70 that did not meet safety standards.

The falsified data practice continued for 24 years until February this year, according to the company.

The inspection department instructed the company s product department to fake the data so that they would pass if products failed to meet the standards during inspections.

JSW has omitted or altered some of the measuring procedures in order to avoid delays in the delivery of the products.

The company acknowledged that the products in question were shipped for use at thermal or nuclear power plants, but it did not reveal the names of the facilities, saying it is still in the confirmation process.

The rotor shafts and retaining rings were manufactured by Japan Steel Works M&E Inc., a wholly owned subsidiary in Muroran, Hokkaido.

Japan Steel Works M&E was founded in April 2020, indicating that the parent company was involved in the fraudulent activity for most of the 24 year period.

When JSW accepted the falsified data on May 9, it did not provide any information on the total number of products affected and where they were delivered to.

It didn't give a news conference on the matter, saying it lacked enough information at this early stage in its investigation.

JSW plans to publish the findings of the investigation by the end of October, after it sets up a committee of lawyers.

Japan Steel Works M&E also makes components for nuclear reactor pressure vessels.

JSW said that the subsidiary has a separate department that oversees quality of those components, and that it is not aware of any illegal activity involving them so far.