Kobe Steel admits fabrication scandal now affects 500 clients

Embattled Japanese steel manufacturer Kobe Steel has admitted its fabrication scandal now affects 500 clients as opposed to the 200 figure divulged on Tuesday, prompting fears about its future if legal claims mounted.

During a press conference on Friday, Kobe revealed that nine additional products, produced in different Kobe group companies, were under investigation.

Earlier in the week, on Tuesday, Kobe announced that it had fabricated data concerning the strength and durability of some aluminium and other copper products.

Reacting to the increased figure, Kobe's chief executive, Hiroya Kawasaki, said he could not yet provide a "clear reason" as to why the falsification had occured, only a day after he'd dismissed suggestions that its faking of quality controls affected the company's steel products division.

Compounding matters, Kobe also revealed that the data falsification may have started a decade ago.

That meant the scope of the problems was likely to affect other products and might extend to the core steel division that accounts for about a third of the outfit's revenues.

Over the prior week alone, news of the scandal had wiped about $1.8bn off Kobe Steel's market value.

More than thirty non-Japanese clients, including Daimler and Airbus to name a few, had been affected by the company's data fabrication.

Japanese carmakers Toyota, Honda and Subaru were among those supplied with the products.

Mitsubishi Heavy Industries, which produces the Mitsubishi Regional Jet passenger plane, was also reportedly among the clients affected.