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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.

According to the statement, Mitsubishi Cable uncovered the falsification in February and stopped shipping affected products on October 23; the company told its parent two days later.

"Making an announcement without pinning down the problem would have caused further disruption and trouble", said Mitsubishi Cable president Hiroaki Murata.

Rubber products made by Mitsubishi Cable that did not meet the specification requirements of the Self-Defense Forces were used in some of the engines of their aircraft and vessels, officials at a government agency responsible for development and procurement of defense equipment have said.

The clients included the defence ministry, which has used the affected products for its military planes and ships.

A third unit, Mitsubishi Aluminum, also supplied products that didn't meet standards, although it has already told customers that the products are safe, the company said, adding that its investigation hasn't uncovered any cases that raise the possibility of legal violations or safety issues.

Markets were closed on Thursday for a national holiday.

Another subsidiary, Mitsubishi Shindoh Co Ltd, manipulated data for metal products, used in cars and electronics, as far back as October 2016. Takata filed for bankruptcy earlier this year because of faulty airbags. A company spokesman for both parent and subsidiary declined to confirm this. It did not know whether there would be any impact on its financial outlook, it said.

Takeuchi also said the company is carrying out a probe into all of its operations, including practices at its subsidiaries.

Local media cited the economy minister, Hiroshige Seko, telling reporters Friday he was asking Mitsubishi Materials why it waited more than six months to report the problem after it was discovered. It submitted a report to Japan's transport ministry on Friday. Mitsubishi Shindoh found out about its problem in October and stopped shipments on Oct. 18, alerting Mitsubishi Materials the following day. Around half of 29 potentially affected customers have been informed.

Mitsubishi has promised that it will rectify all the mistakes in the production and improve its quality control to make sure the issues do not get repeated again.

Boeing Co is now looking into the issue, a company spokeswoman said.

Index heavyweigts rose, with SoftBank Corp9984.T gaining 1.4 percent and KDDI Corp9433.T advancing 2.6 percent.



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