Shimano is taking a recommendation from Japan’s Fair Trade Commission “seriously” and has already paid compensation to some of its 121 sub-contracting companies affected by the violation.

In a press release published on the components manufacturer’s website, Shimano “sincerely apologises for any concern or inconvenience”, the Fair Trade Commission in its home country of Japan notifying the company of concerns over details relating to outsourced manufacturing.

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In total, 121 companies are affected, Shimano explaining how the manufacturing of “certain product parts” are outsourced to subcontractors, with moulds and other equipment lent from Shimano to these other companies.

The Fair Trade Commission questioned Shimano requiring subcontractors to store the lent equipment free of charge and conduct inventory checks to verify the mould and manufacturing equipment’s condition, even without orders for parts “over an extended period of time”.

It all relates to manufacturing since 1 December 2023, the press release suggesting the number of relevant moulds and pieces of equipment is 4,313 in total, at 121 companies.

“Regarding costs incurred by subcontractors due to the Shimano’s conduct during the period mentioned above, we have already requested cost estimates from all affected subcontractors,” the components giant confirmed. 

“For those who requested compensation, we have completed payments after discussing with them on the amounts to be paid. For those who did not request compensation, we will continue to our discussions based on this recommendation, as we will consult with the Japan Fair Trade Commission as appropriate, to ensure proper resolution.

“Furthermore, for moulds and other equipment related to parts for which no specific future production schedule can be provided, we are proceeding with collection or disposal.”

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Shimano apologised and said it takes the violation “seriously”, the board of directors explaining they will take steps to ensure the company does “not request unjust economic gains and harm the interest of subcontractors in the future”.

As part of this process, Shimano said internal compliance training would be reviewed and verification systems “strengthened”.