Risk of Serious Quality Issues and Product Liability
First written in FY2016. 5 of 14 entries say "Materialised", first in FY2018. Latest entry: FY2025.
Toray Industries moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 11 of 58 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Product warranty costs (Note 1) △ 1,810 －」
No product warranty costs related to possible defects in previously sold carbon fiber composite materials products were recognized in the current fiscal year, compared with ¥1.810 billion in the previous fiscal year. - FY2025-H1MitigatedAnnual report
「Product warranty costs (Note 1) △ 1,810 －」
No product warranty costs related to possible defects in previously sold carbon fiber composite materials products were recognized during the interim consolidated accounting period, compared with ¥1.810 billion in the same period of the previous year. - FY2024MitigatedAnnual report
「Product warranty costs include the costs recognized for replacing and repairing certain products for general industrial applications that our company previously manufactured and sold in the Carbon Fiber Composite Materials business and that may have defects.」
Product warranty costs related to previously sold carbon fiber composite materials products amounted to ¥1.810 billion, down from ¥3.452 billion in the previous fiscal year. - FY2024-Q2MaterialisedAnnual report
「Product warranty costs include the costs recognized for replacing and repairing certain products for general industrial applications that our company previously manufactured and sold in the Carbon Fiber Composite Materials business and that may have defects.」
In connection with possible defects in previously sold carbon fiber composite materials products, product warranty costs of ¥1.810 billion were recognized for replacement and repair costs. - FY2023MaterialisedAnnual report
「Product warranty costs include the estimated future costs of replacing and repairing certain products for general industrial applications that our company previously manufactured and sold in the Carbon Fiber Composite Materials business and that may have defects.」
The possibility of defects in previously sold carbon fiber composite materials products materialized as ¥3.452 billion in product warranty costs for replacement and repair costs. - FY2023-Q3MaterialisedAnnual report
「Product warranty costs include the estimated future costs of replacing and repairing certain products for general industrial applications that our company previously manufactured and sold in the Carbon Fiber Composite Materials business and that may have defects.」
In connection with possible defects in previously sold carbon fiber composite materials products, product warranty costs of ¥3.452 billion were recognized for replacement and repair costs. - FY2023-Q2MitigatedAnnual report
「For products whose registrations were revoked but which will continue to be sold as certified products, we had been consulting with UL to re-register them and obtain certification under new product names. By 12 October 2022, re-registration had been completed for all affected product types.」
All re-registrations of product types that will continue to be sold under the UL certification issue have been completed. Separately, product warranty costs have also been recognized for possible defects in certain carbon fiber products sold in the past. - FY2023-Q1WorsenedAnnual report
「As a result, UL certification registrations for some resin products were revoked. For products whose registrations were revoked but which will continue to be sold as certified products, we have been consulting with UL to re-register them and obtain certification under new product names.」
The company explicitly states that the improper conduct involving UL certification resulted in the revocation of certification registrations for some resin products. Discussions on re-registration are required for products that will continue to be sold, expanding the scope of the impact of the quality and product liability risks. - FY2022WorsenedAnnual report
「The report pointed out that the improper conduct had continued for many years and analyzed its causes, and recommendations for preventing recurrence were received.」
Regarding the improper conduct involving UL certification registration, an expert investigation established that it had continued for many years and analyzed its causes, making the scope of the major quality and product liability risks more specific. - FY2022-Q3MaterialisedAnnual report
「In connection with the certification registration of certain resin products sold by our company, inappropriate conduct involving Underwriters Laboratories, a globally recognized U.S. independent safety science organization (hereinafter, "UL"), was discovered. Regarding UL94, the standard established by UL for the flame-retardant performance of resins, samples for testing that differed from the grades specified for UL's certification tests were prepared and submitted for certain product types. In addition, some registered product types were manufactured and sold with compositions that differed from those at the time of registration.」
In connection with the risk of major quality issues and product liability, inappropriate conduct involving UL certification test samples and the compositions registered for resin products was discovered. The company states that an investigation by an expert investigation committee is under way and that the matter could affect operating results if costs related to the affected products become substantial. - FY2019RestatedAnnual report
「Our group pursues the highest quality standards in the world, but the possibility of an unforeseen major quality issue cannot be completely ruled out. If such a serious event occurs, our group's operating results and financial position may be adversely affected.」
The company continues to disclose the residual risk of major quality issues and product liability. - FY2018MaterialisedAnnual report
「In this context, it was discovered that our subsidiary, 東レハイブリッドコード株式会社, had rewritten product inspection data. It has been confirmed that the matter did not involve any violation of laws or regulations and that there were no safety issues with customers' products.」
In connection with the risk of major quality issues and product liability, the rewriting of product inspection data was discovered at a subsidiary. However, the company states that there was no violation of laws or regulations and no issue affecting the safety of customers' products. - FY2017RestatedAnnual report
「Our group pursues the highest quality standards in the world, but the possibility of an unforeseen major quality issue cannot be completely ruled out. If such a serious event occurs, our group's operating results and financial position may be adversely affected.」
The company continues to disclose both its pursuit of high quality and the residual risk of a major quality issue. - FY2016First statedAnnual report
「Our group pursues the highest quality standards in the world, but the possibility of an unforeseen major quality issue cannot be completely ruled out. If such a serious event occurs, our group's operating results and financial position may be adversely affected.」
While stating its policy of pursuing high quality, the company continues to identify the possibility of a major quality issue as a residual risk.