Kobe Steel Ltd. CEO Hiroya Kawasaki might step down in light of the inspection data fabrication scandal that has tainted its products, a source familiar with the matter said Sunday.
The nation's third-biggest steel maker will hold a board meeting, possibly Monday, to discuss his resignation, the source said.
The steel-maker could announce a new management team Tuesday when it reveals steps to strengthen compliance and prevent similar incidents from recurring.
Kobe Steel said last October it found inspection data had been fabricated for some of its aluminum and copper products, which were shipped to hundreds of companies including car, train and aircraft makers. These included Toyota Motor Corp. and Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy Industries Ltd.
But more data fabrication cases have since emerged in steel used to make rockets and defense equipment as well.
The scandal has also affected Kobe Steel's business overseas. The U.S. Justice Department has asked Kobe Steel to submit documents related to the scandal.
General Motors Co., Ford Motor Co., Airbus and Boeing Co. are reportedly investigating whether they used any of the compromised materials.