Sapa says U.S. investigates aluminium product test manipulation

Norwegian aluminium products maker Sapa said that some employees at its plant in Portland, Ore. had falsified test records for two decades and that the U.S. authorities were investigating the company.

Sapa, a joint venture between Orkla and Norsk Hydro , two of Norway's biggest industrial firms, said its Portland plant had been suspended as a U.S. federal government contractor since the end of September.

Company spokeswoman Erika Ahlqvist said external auditors were now auditing the rest of its North American business and customers would be told of the results. She said it was too early to say what financial impact the discovery might have.

Sapa makes extruded aluminium which is used in a wide range of products, such as car parts, bench seating in sport stadiums and supermarket shelves.

The tests were used to measure the strength of the aluminium profiles and test how much force it could stand before breaking.

"Specifically, we have learned that some test results for mechanical properties -- ultimate tensile strength, yield strength, and elongation -- have been altered to change failing test results to passing test results between 1996 and 2015," Sapa said in a statement.

Sapa learned of the falsified test results after an internal investigation, which was prompted by an observation made by an employee in Portland, Ahlqvist said. The firm said U.S. Department of Justice's (DOJ) civil and criminal divisions were investigating the case.

"The Portland plant is only one out of 22 locations in North America and the share of the total volume from Portland which goes to government customers is less than a half percent," Ahlqvist told Reuters.

Sapa was originally a Swedish aluminium producer which Orkla bought in 2005. It was merged with a similar unit at Norsk Hydro to create the current joint venture under the name Sapa in 2013.

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