(Adds details, background on scandal)
March 5 (Reuters) - Kobe Steel Ltd Chief Executive Officer Hiroya Kawasaki will step down in connection with quality lapses that resulted in substandard materials being supplied to more than 500 companies, the Nikkei reported on Tuesday.
The head of the company's aluminum and copper division, Akira Kaneko, will also resign along with other executive changes, according to the Nikkei report. (http://s.nikkei.com/2H6e2tU)
Kobe Steel will announce the personnel changes Tuesday, the Japanese business daily reported.
Japan's No.3 steelmaker, which supplies manufacturers of cars, planes and trains across the world, said last year that it had supplied customers products with falsified specifications, throwing global supply chains into turmoil.
Kobe also admitted that its executives were aware of the cheating and that the scandal was likely to reduce its recurring profit by 10 billion yen ($94.14 million) this year.
Kawasaki will vacate his position in June, the Nikkei reported.
Kobe Steel did not immediately respond to requests for comment.
($1 = 106.2200 yen) (Reporting by Indranil Sarkar and Chris Thomas in Bengaluru; Editing by Shounak Dasgupta)