Mitsubishi Materials shares plunge after it admits quality assurance failures 

Mitsubishi Materials 
Mitsubishi Materials bosses apologised after two of its subsidiaries falsified quality data  Credit: Reuters 

Shares in Mitsubishi Materials Corporation slumped more than 11pc after the industrial conglomerate became the latest Japanese company to admit to falsifying quality assurance data. 

MMC, part of the broader Mitsubishi “keiretsu”, or group of companies, said up to 70 of its aerospace clients and seven of its auto industry customers may have received the improperly tested products produced by two of its subsidiaries, Mitsubishi Cable Industries and Mitsubishi Shindoh. 

The parts affected include rubber gaskets and packings that prevent the leakage of oil, water and air, and metal strips used in cars’ electrical systems.

MMC said: “We sincerely apologise for any problems and difficulties that this matter has caused to all concerned parties.”

The company said it halted shipments of the affected products last month and created a taskforce to look into the problems. It now plans to strengthen and expand its quality control team.

The news follows a string of similar admissions by Japanese companies Nissan, Subaru and Kobe Steel, which works with Mitsubishi Materials on a joint venture in copper tube production. 

MMC shares closed down 8pc at ¥3,760 (£25.37).  

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