OREANDA-NEWS. Asahi Kasei Construction Materials Corp., subsidiary of Asahi Kasei Corp., has completed all possible investigation of whether or not there was manipulation of data regarding the installation of precast concrete piles, and today reported the following results to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

Note that a portion of the report made on November 13, 2015, has been corrected, and certain projects which should have been subject to investigation have now been added.

1. Results of investigation

In accordance with instructions of the MLIT, Asahi Kasei Construction Materials has submitted information on certain construction projects to the prime contractors and to local government bodies that requested information. Confirmation of the data included in installation reports was performed in cooperation with the prime contractors and local government bodies.

There are 12 projects which have been added to the 3,040 projects subject to investigation, raising the total to 3,052. As of today, there are 188 projects for which investigation has not been possible, either due to lack of data for use as a basis for determining whether or not there was manipulation of data, or due to the relevant structures no longer existing, etc., listed below as “those for which confirmation has not been possible.” Investigation of all other projects has been completed, and manipulation of data was found for 360 projects.

2. Confirmation of safety at projects where manipulation of data was found

Regarding projects where manipulation of data was found, Asahi Kasei Construction Materials will cooperate with the prime contractors and the owners of the buildings in efforts to confirm safety based on instructions from the MLIT. Regarding projects where a Specific Administrative Agency* has confirmed safety, the Specific Administrative Agency will issue a report to the MLIT.

  • *As defined in Paragraph 35 of Article 2 of the Building Standard Act, a Specific Administrative Agency is a local government which has a Building Official. This may be the mayor of a city or the governor of a prefecture.

3. Actions moving forward

The fact-finding committee of Asahi Kasei Corp. will thoroughly probe the circumstances and motives for manipulation of data while receiving guidance and counsel from the independent commission, and formulate appropriate corrective measures. An interim report of the investigation is tentatively scheduled by the end of 2015.

The financial effect of this matter on the consolidated performance of Asahi Kasei Corp. is unclear at this time. An announcement will be made promptly in the event that a material impact is confirmed.