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Final report on preventative measures for quality control (QC) improprieties in some of Fujikura products and progress in confirming the safety of the affected products

We would like to offer our deepest apologies to our customers and other related parties for the considerable inconvenience and concern caused by the inappropriate quality control (QC) incidents (hereinafter referred to as "the incidents") involving some Fujikura Group products, which were announced on August 31, 2018 and April 25, 2019.
Based on the results of an investigation into this case by an external law firm (hereinafter referred to as the "Investigation"), Fujikura Group has dug deep into the facts and causes of the 152 confirmed cases (99 customers), and has implemented measures to prevent recurrence, which it has made public as necessary.
In parallel with these efforts, we have been conducting safety checks on Fujikura Group products involved in this incident (hereinafter referred to as "the products") and explaining the results of these checks to our customers.
Now that these measures have been completed, we would like to provide a final report on the measures we have taken to prevent a recurrence of this incident and the progress of our safety confirmation efforts for the affected products.

Notes

1. Measures to prevent recurrence
Based on the preventive measures announced on April 25, 2019, we have been working on "governance reform," "appropriately understanding manufacturing process capabilities and inspection capabilities and verifying customer requirements," and "improving awareness of quality compliance." As a result, we believe we have achieved the expected levels in each area.
Furthermore, since the start of this investigation, we have been conducting regular quality inspect and checks based on guideline established by an external law firm. When necessary, we have sought the opinions of external law firms to address any issues identified during these inspections, and have established the process of discovering and addressing such issues as a part of our business processes.
For a progress report on measures to prevent recurrence, please refer to the "Major announcements regarding this incident" at the end of this document.

2. Progress in safety confirmation
Of the 99 customers, safety checks for the affected products had not been completed for 18 as of July 2020, and safety checks have now been completed for 17 of these customers.
The remaining customer was unable to conclude that safety confirmation had been completed due to the difficulty of identifying the locations where the affected products were used, but they did state that "after investigating and examining the performance, soundness, and safety of the affected products to the greatest extent possible, there are no issues for the time being."
As a result of the above, safety confirmation work has now been completed.
For the progress made in safety confirmation to date, please refer to the table below and the "Major announcements regarding this incident" at the end of this document.

Furthermore, as we continued our inspect and confirmation work based on guideline formulated by an external law firm, we discovered five new cases of quality improprieties, separate from the 152 cases in question. All five cases (including one customer that was not included in the 99 companies subject to the safety confirmation mentioned above) were reported to our customers, who confirmed the performance, soundness, and safety of the products.

Progress of safety confirmation (breakdown of 99 customers)

Publication date A B C
April 25, 2019 38 35 26
October 31, 2019 78 21 0
July 31, 2020 81 18 0
October 31, 2025 98 0 0

A: The customer has completed confirmation of the performance, soundness, and safety of the affected products.
B: The customer is currently checking the performance, soundness, and safety of the affected products, but has stated that there are no problems for the time being.
C: We have already notified our customers that the affected products have been delivered.
*As mentioned above, one of the 99 customers was unable to conclude that confirmation of the performance, soundness, and safety of the affected products had been completed due to the difficulty of identifying the locations where the products were used, among other reasons. However, the customer stated that "as a result of investigating and examining the performance, soundness, and safety of the affected products to the greatest extent possible, there are no issues for the time being."

3. Future initiatives
Fujikura Group will continue to supply products and services that support social infrastructure, such as electric wires and cables, and will work on measures to prevent recurrence, such as "governance reform," "appropriate understanding of manufacturing process capabilities and inspection capabilities and verification of customer required specifications," "improvement of quality compliance awareness," and "reform of organization culture and awareness," to prevent similar quality improprieties from occurring again.
In particular, with regard to governance reforms, we will promote the introduction of systems that eliminate human intervention, such as computerization and automation of inspection processes, and strive to restore and improve the trust of our customers and other stakeholders. We appreciate your continued understanding and support.

Please refer to the following page for the main announcements regarding this case.
https://www.fujikura.co.jp/company/quality-assurance/

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