It was discovered that Kurita Analysis Center, a wholly owned subsidiary of Kurita Industries, did not actually analyze alkyl mercury and issued documents containing false results. Behind the issuance of inappropriate weighing certificates to 533 customers over about three years starting in June 2023 was the systematic concealment of equipment malfunctions at the site.

Overview of Inappropriate Conduct and the Scale of Damage Affecting 533 Companies

A serious inappropriate case involving analysis services has been revealed at Kurita Analysis Center Co., Ltd. (hereafter, KBC), a subsidiary of Kurita Kogyo, the largest water treatment company. KBC Corporation issued documents stating the results of alkyl mercury without actually conducting analysis for the alkyl mercury for about three years, from June 1, 2023, to July 7, 2026, despite receiving analysis requests for drainage and soil.

The scope of impact of this case is extremely broad, with 533 customers and a total of 3,806 samples included. Furthermore, 2,373 certificates of measurement, which are official documents issued under the Measurement Act, were issued without analysis, fundamentally shaking the company’s trust. The case was discovered on July 6, 2026, triggered by internal consultations about suspicious points in the analysis process. When we checked the history of the analysis instruments on July 7, it was confirmed that no actual analysis records remained. The diagram below illustrates where fraud occurs during the analysis process.

Concealment of Analytical Equipment Malfunction and Three Years of Neglect

The direct cause of the fraud has continued for such a long period is the blocking of information on site. According to the investigation, when a malfunction occurred with the alkyl mercury analyzer in June 2023, the on-site personnel did not properly report this fact internally. Normally, measures such as equipment repairs or outsourcing to external organizations should have been taken, but the person in charge neglected to report and continued to create false results based on past data without conducting analysis.

This misconduct is not merely a personal mistake, suggesting that for three years, the systematic checking function has not been functioning at all. KBC Corporation was a “registered business” registered with the prefectural governor under the Measurement Act, and was required to enforce strict management by nationally qualified individuals such as measuring specialists. However, in reality, even basic internal audits such as cross-checking the operational history of analytical instruments with issued reports were not conducted, creating a soil that allowed for concealment of the site.

Samples covering a wide range of areas such as wastewater and industrial waste

The samples targeted in this inappropriate case ranged widely, including wastewater, soil, industrial waste, and fly ash. These are extremely important items for corporate environmental compliance, and many customers trust KBC’s analysis results to report to authorities and use them as a basis for environmental maintenance activities. In particular, the results of wastewater analysis are directly linked to compliance with laws such as the Water Pollution Control Act, so the fact that the analysis was reported as ‘no problem’ without analysis means that the client company was at risk of unintentionally committing legal violations.

After the incident was discovered, KBC reported it to the Ibaraki Prefectural Metrology and Testing Institute and immediately stopped alkyl mercury analysis at its headquarters office. Currently, for the time being, we are outsourcing the process to external analytical agencies, but the validity of previously issued measurement certificates requires individual scrutiny. Client companies have expressed strong concerns about being unable to prove the legitimacy of their environmental management, which inevitably erodes the credibility of the Kurita Industrial Group as a whole.

[Serious Social Impact] Collapse of trust over deadly poisons

The dangers and strict legal standards of alkyl mercury

The substance omitted from this analysis, “alkyl mercury,” carries extremely significant social significance. Alkyl mercury is a general term for organic mercury compounds in which alkyl groups are bonded to mercury, including methylmercury, which once caused Minamata disease, one of the four major pollution diseases. Because it is easily absorbed into the body and accumulates in the brain, it is a highly toxic substance that seriously affects the central nervous system, so its production and use are strictly restricted worldwide.

In Japan’s environmental regulations, alkyl mercury is one of the strictest items in environmental standards that are considered desirable to be maintained to protect human health. The wastewater standards under the Water Pollution Control Act stipulate “not detectable (less than 0.0005 mg/L),” meaning even trace amounts are not allowed to be discharged. The fact that such a highly toxic substance was left unchecked for even three years by a specialized environmental analysis agency is a breach of trust that disregards the history of pollution and threatens social safety.

Forgery of official documents undermining the reliability of the measurement certification system

A measurement certificate issued by an environmental analysis agency is not just a report, but a document with official certification based on law. Under the Measurement Act, only businesses with specific registrations are permitted to issue such instruments, which grant the responsibility of the metrology and social credibility. With this certificate, client companies demonstrate to authorities and society that their business activities do not have a negative impact on the environment.

The fact that 2,373 weighing certificates were issued “without analysis” fundamentally undermines the reliability of Japan’s measurement certification system itself, which supports environmental management. If a sample actually contains alkyl mercury exceeding the standard value, its discharge has been overlooked. Falsification and fabrication of analysis data have also been discovered in recent years in other manufacturing industries such as Kobe Steel and Canadevia (formerly Hitachi Zosen), but the shock of such fraud by “inspection professionals” who directly handle environmental data is extremely significant, raising questions about the governance of the entire industry. Please refer to the diagram below.

Impacts on client companies’ business continuity and compliance

For the 533 client companies that received fraudulent analysis results, this incident is far more than just a scandal involving a contractor. Many companies have implemented environmental management systems such as IS014001, and accurate analysis results from external organizations are essential for operating such systems. Once it is found that no analyses were conducted, the legitimacy of the environmental reports and government submissions these companies have prepared over the past several years will be undermined.

Especially in soil pollution countermeasures and industrial waste treatment, the presence or absence of alkyl mercury greatly affects treatment costs and methods. If the company believes KBC’s false report of ‘non-detection’ and improper handling is carried out, even though it contains hazardous substances that would normally require expensive treatment, the client company may be held liable for illegal dumping or contamination spread. Kurita Kogyo considers the impact on consolidated results to be minimal, but the costs of compensation to customers and restoring trust could be immeasurable.

[Future Developments] Pathways to Restore Trust and Industry Highlights

Thorough Comprehensive Investigation and Retrospective Investigation of Past Data

Following the discovery of the incident, Kurita Industry and KBC are urgently investigating the facts and investigating the cause. At present, it has been confirmed that actual analysis is being conducted using the latest data for locations other than the headquarters and for analysis items other than alkyl mercury. However, since this fraud lasted for three years, it is essential to investigate whether similar concealment was not conducted in other analysis items or to investigate all cases going back to the past.

Of particular interest is the clarification of the “motivation” behind the on-site personnel not reporting equipment malfunctions and the “organizational culture” that tolerated them. In the case of Canadavia, compliance with deadlines, prioritizing cost awareness, and a closed organizational culture became breeding grounds for fraud. At Kurita Kogyo as well, the value of “always remaining sincere” advocated by management has not been deeply rooted in the workplace, and the formalization of internal control systems is being seriously questioned. Whether the recurrence prevention measures based on the survey results are effective is the first step in restoring trust.

Impact of Administrative Actions and Certification of Measurement Certification Projects

The response of the administrative authorities responsible for the Measurement Law is also a major focus. KBC has already reported to the Ibaraki Prefectural Measurement and Testing Office, but going forward, there is a possibility of strict administrative penalties such as on-site inspections under the Measurement Act, cancellation of registration, or suspension of operations. In the past, there have been cases where the certification of a business operator who falsified dioxin measurement data was revoked, so for extremely malicious cases of “unimplemented or false reporting” like this, firm disciplinary action is expected.

If the registration of the metrology certification business is canceled, KBC will be unable to continue its analytical operations, dealing a fatal blow to Kurita Group’s environmental solutions business. Additionally, investors are also watching with scrutiny. Market reactions on forums and other platforms have included criticism of a lack of learning from past scandals and concerns about the spillover over to the reliability of its core ultrapure water supply business. The impact on future performance is considered minor, but damage to corporate value is inevitable.

Strengthening the reliability and audit system across the analytics industry

This scandal is not just a problem for one company; it has raised doubts about the reliability of Japan’s entire environmental analysis industry. It is difficult for customers to directly verify the analysis site, and they have no choice but to trust the values on the issued measurement certificates, resulting in the exploitation of the “information asymmetry.” Industry groups and regulatory authorities, taking this seriously, may push to strengthen regulations in the future, such as mandating the storage of raw data for analytical instruments or introducing surprise audits by external organizations.

Additionally, companies will increasingly prioritize not only low prices and delivery times but also the transparency of their compliance systems and data management when selecting contractors. Even large corporate groups like Kobe Steel and Kurita Kogyo face collective responsibility for subsidiary management if there are deficiencies. The recurrence prevention measures formulated by Kurita Kogyo require not only a review of rules but also fundamental reforms, such as automatic data recording using IT systems and the establishment of a strong supervisory system by the headquarters’ Quality Assurance Division.

Reference Page

• [Regarding the Discovery of Inappropriate Cases in Analysis Services at the Kurita Analysis Center https://www.kurita-water.com/news/20260721-01/

• [Basic Policy on Internal Control System Construction | Kurita Industries]https://www.kurita-water.com/policy/basic/ics.html

[#栗田工業 #クリタ分析センター #不適切事案 #環境分析 #アルキル水銀 #コンプライアンス #経済ニュース #ビジネス]