- IHI Corporation, a prominent marine and land engine manufacturer in Japan, faces scrutiny after revealing that its subsidiary, IHI Power Systems Co., Ltd., made “improper alterations” to test operation records for marine engines and land-use engines.
- Over 4,000 marine engines shipped to customers were found to have altered data, prompting an internal investigation into compliance issues and workplace culture.
Japan’s IHI Corporation finds itself embroiled in controversy following the disclosure of data alterations in test operation records for marine engines and land-use engines by its subsidiary, IHI Power Systems Co., Ltd. The revelation has raised concerns over compliance and workplace culture within the company.
Extent of Alterations
As of April 23, an investigation revealed that out of 4,881 marine engines shipped to customers, 4,215 had altered data in their test operation records. The discrepancies were detected following an internal review of available data since 2023.
Internal Investigation Initiated
In late February 2024, an employee of IHI Power Systems reported discrepancies in the “fuel consumption rates” provided to customers compared to the actual measurement values during test operations. This prompted IHI and IHI Power Systems to launch an internal investigation, focusing on verifying the accuracy of recorded values and conducting interviews with relevant personnel.
Root Causes and Compliance Issues
Interviews with employees revealed that alterations were made to manipulate fuel consumption data or adjust variations in the data. Some employees cited following procedures established by their predecessors. The underlying causes were attributed to a lack of compliance awareness and issues within the workplace culture.
Safety Concerns and Regulatory Compliance
While there have been no confirmed safety issues during test operations or actual use of the engines, IHI is reconfirming compliance with laws, regulations, and standards. Concerns arise regarding deviations from standards for marine products in NOx regulations and fuel consumption rates prescribed by Fishing Boat Inspection Regulations. The company pledges to continue the investigation diligently.
As IHI Corporation grapples with the fallout from this scandal, stakeholders await further developments and actions taken to address compliance shortcomings and rebuild trust within the industry.
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Source: Manifoldtimes
