Steelmaker stripped of CARES Approval after breaches found in spot checks

Serious infringements in the use of falsified steel consignments have led to the suspension of an international steel manufacturer, the world’s leading steel certification authority, CARES, announced today.

The move to suspend all CARES approvals for products associated with the unnamed manufacturer, follows several warnings to suppliers investigated over unauthorised trading with non-CARES approved steelmakers.

Spot checks carried out at a facility outside the UK found that the manufacturer had ‘passed off’ product manufactured from non-CARES-approved billet, then placed it into the supply chain with altered source information disguising its true provenance.

As part of its ongoing, rigorous efforts upholding certification integrity across global supply chains, unannounced inspections are routinely carried out at various supply stages — from manufacturing to end-user delivery. In this instance, weighbridge inspections highlighted discrepancies between the declared origin of the steel billets and the actual source of the material despatched.

The company involved has now been stripped of its CARES certification and faces the risk of additional regulatory sanctions.

“We do not take the decision to suspend CARES certification from any of our approved companies without very good cause,” said a CARES spokesperson. “This case presented clear and repeated evidence of fraudulent behaviour through passing off billets from an unapproved source.

“CARES has issued a formal notice to all CARES-Approved rolling mills warning that steel billet for CARES certified products must come from suppliers holding a relevant, valid CARES certificate of approval.

“While CARES remains confident that this is an extremely rare incident, it does serve to remind all CARES-Approved companies of their responsibilities in ensuring they have a clear understanding of the provenance of billets they are sourcing, in order to prevent materials entering the market from unapproved sources.”

The company suspended by CARES now faces a full re-assessment of all its operations before it can be considered for reinstatement of its CARES Approvals.