Report of investigation of 3,040 precast concrete pile installation projects of Asahi Kasei Construction Materials Corp.

November 13, 2015
Asahi Kasei Corp.

Asahi Kasei Construction Materials Corp., subsidiary of Asahi Kasei Corp., has today reported the following to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) regarding the investigation of manipulation of data regarding the installation of precast concrete piles.

1.Progress of investigation

In accordance with instructions of the MLIT, Asahi Kasei Construction Materials has submitted information on specific 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.

Regarding prime contractors with whom contact was not possible due to unknown whereabouts, etc., efforts to make contact included directly visiting the locations of the construction projects and inquiring with the owners of the buildings. As of today, there are 2,922 construction projects for which requests to the prime contractors for investigation have been completed.

Investigation flowchart

2.Results of investigation of 3,040 projects

As of today, confirmation of results of investigation of 2,376 projects has been completed. Among them, manipulation of data has been confirmed for 266 projects. There were 118 projects for which confirmation has not been possible due to inability to identify the prime contractor, absence of installation data, etc.

Based on a request from the MLIT, priority in investigation was given to the 602 projects that were for the construction of schools, medical facilities, and care facilities. Of them, manipulation of data was found for 63 projects.

3.Confirmation of safety at projects where manipulation of data occurred

Regarding projects where manipulation of data occurred, 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.

4.Actions moving forward

The Asahi Kasei Group will fully cooperate with the investigation by the independent commission. Progress in the investigation will be reported as appropriate.

  1. 1)Regarding projects for which confirmation with the prime contractor is in progress as of today, confirmation work will be urgently advanced and a report will be made to the MLIT by November 24, 2015.
  2. 2)Regarding the 118 projects for which Asahi Kasei Construction Materials has been unable to submit information to the prime contractor and for which requests for investigation have not been completed, efforts to identify the prime contractor will continue.
  3. 3)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.

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.