Kobe Steel Admits It Falsified Data, Sold Faulty Metals


Hello, I’m Shawn Fitzgerald with a special Thomas Index report.

In news that could rock supply chains across the globe, Japan’s Kobe Steel has admitted to selling faulty metals into the marketplace. The company admitted to falsifying data about the strength and durability of its copper, aluminum, and steel. 

These are materials that failed quality control tests, and reports are that Kobe Steel sold these products to roughly 500 companies worldwide – some of it going back as far as ten years.

Kobe’s top customers represent a veritable who’s who in automotive, aerospace, and electronics, and it's reported that the compromised materials were used in the manufacture of everything from airplanes, bullet trains, cars, to space rockets.

We expect this news to affect every level of the supply chain, from primes to tier 1, tier 2 and tier 3 suppliers. It's likely that manufacturers will rely on their existing suppliers to get them through the short term, but in the long run, they’ll need replacements for Kobe Steel material. This unmet need means massive new business opportunities for material suppliers.

We’ll be monitoring that sourcing activity on the Thomas Network at Thomasnet.com – but expect an upward trend in opportunity for suppliers of copper, aluminum, and steel.

This news is a developing story that we’ll definitely be watching closely.

That’s all for this special edition of the Thomas Index, thanks for watching.

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