Economy
Justice Seeks Records on Kobe Case
Written by Tim Triplett
October 26, 2017
The U.S. Justice Department wants to know if Americans are at risk as a result of the Kobe Steel quality scandal. The Japanese metal producer’s subsidiary, Kobe Steel USA, Inc., received a request from the Justice Department on Oct. 16 seeking related documents. Kobe officials said they plan to cooperate with the Justice investigation.
Kobe Steel’s stock price has plummeted by more than 40 percent following its admission Oct. 8 that it had falsified quality data and sold potentially substandard aluminum, copper and steel products to customers around the world, including American companies Boeing, Ford and General Motors. Some 500 companies may have received metal products with falsified test records dating back to 2007.
Kobe and its customers are scrambling to determine if metals that may not have been produced to the proper specifications were used in applications that pose a potential danger to the public, such as critical parts in automobiles or aircraft. So far, no specific safety issues or recalls have been announced.
The Justice Department scrutiny raises the specter of legal action against Kobe Steel, whose wrongdoings have shaken the confidence in Japan’s manufacturing industry.
Tim Triplett
Read more from Tim TriplettLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.