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JFTC Says Shimano Broke Subcontract Act, Recommends Remedies Over Unpaid Mold Storage

The regulator says the manufacturer used 121 suppliers to keep roughly 4,300 company-owned molds without compensation, some held for decades.

Overview

  • On September 17, the Japan Fair Trade Commission issued an administrative recommendation requiring payment of storage-cost equivalents and measures to prevent recurrence.
  • Investigators found Shimano had no long-term orders planned yet kept molds and related equipment at subcontractor sites at no charge since at least December 2023.
  • Some items dated back to 1994 and weighed up to about two tons, and suppliers were instructed to enter storage status into Shimano’s system twice a year without pay.
  • Shimano told the regulator it retrieved or disposed of 468 molds between December 2023 and December 2024 and acknowledged internal lapses in oversight.
  • The company said it is strengthening compliance, paying affected suppliers for storage and administrative work, and improving training and internal controls; the action is not a criminal sanction.