Investigators have begun probing data fabrication by Kobe Steel Ltd., the company said Wednesday, in a move that could lead to criminal charges.

Prosecutors and police believe the company violated a law preventing unfair competition by misrepresenting its products in one of a series of recent scandals that have rocked the nation's manufacturing industry, sources close to the matter said.

"We deeply apologize for causing great trouble to the people involved," Kobe Steel said in a statement, adding that it will "sincerely respond (to the probe) and cooperate (with authorities)."