TOKYO (BRAIN) — Shimano has apologized after Japanese authorities cited the company for delaying payment to some subcontractors.
According to a Shimano statement, the Japan Fair Trade Commission issued a "recommendation" to the company for requiring 121 subcontractors to store Shimano-owned molds and other equipment free of charge. The company also asked the subcontractors to inspect and inventory the stored equipment periodically.
"We sincerely apologize for any concern or inconvenience this has caused the affected parties," the company said.
Shimano said it has requested cost estimates from all affected subcontractors and made payments to those who requested. It said it will continue discussions with the others and consult with theFair Trade Commission to resolve the issue.
Shimano said its board has committed to follow Japanese trade laws and "will not request unjust economic gains and harm the interest of subcontractors in the future. We will also review internal compliance training and strengthen our verification systems. We remain committed to enhancing compliance and preventing recurrence by thoroughly communicating these measures to all officers and employees."
