Kobe Steel Ltd. is expected to be indicted over a data fabrication scandal that rocked the manufacturing industry, as police are set to refer the company to prosecutors possibly next week, sources familiar with the matter said Thursday.

The actions are likely to be taken against the firm for allegedly violating a law preventing unfair competition by systematically misrepresenting the quality of its products for decades.

The police are also considering referring to prosecutors the personnel involved in the alleged fabrication at three manufacturing plants.