Toyo earmarks €100m for quake-proof rubber scandal

Osaka, Japan – Toyo Tire & Rubber Co. Ltd has reported an extraordinary loss of Yen14 billion (€102.5 million) in its first quarter results (to 31 March) as it prepares to compensate for supplying substandard rubber shock absorbers.

The announcement on 12 May, follows the company’s recent admission that its earthquake-protection products for the construction industry did not conform, as specified, to official certification.

The company, said Toyo, had been manufacturing and selling seismic isolation rubber itself and through its subsidiary Toyo Chemical Industrial Products Ltd. that was certificated for quality by Japan’s Ministry of Land, Infrastructure Transport and Tourism.

“However, because it was discovered that some delivered products did not conform to ministry certification performance standards, the company posted a first quarter extraordinary loss of 14,000 million yen for provision of reserve for product warranties based on an estimate for the cost of repair work and other measures,” it added.

Toyo announced in March that 55 buildings had been provided with the substandard rubber, and raised the number to 145 later in April.

According to Toyo, the rubber had been supplied to the market from 1996 until February 2015.