Kao Corp. said it will integrate its group’s cosmetics research & development, as well as its production operations, following the widening recall of skin-whitening products sold by its cosmetics subsidiary unit Kanebo Cosmetics Inc. As a result, Kanebo Cosmetics will manage the Kanebo brand.

Kao has already integrated its call center and quality control functions for cosmetics with those of Kanebo Ltd., to strengthen cooperation within the group. The consolidation is aimed at promoting more information-sharing between the companies.

Earlier this year, Kanebo reported serious symptoms such as large white blotches on the skin of the users of its product. This promoted a wide-scale product recall.

About 14,000 people have so far reported some skin discoloration after using the products. Kanebo has said it can expect to lose 6 billion yen ($61 million) of operating profit this fiscal year.

Kao acquired Kanebo in 2006 in a deal valued at Y410 billion to become the second-largest cosmetics maker in Japan by sales after Shiseido Co.