Fayat Group to pay US$11m for sale of machines with non-compliant engines in US

The Justice Department and Environmental Protection Agency announced that they have reached a settlement agreement with Fayat and nine of its subsidiaries: Bomag GmbH; Bomag Americas Inc; Bomag (China) Construction Machinery Co Ltd; Marini SpA; Ravo BV; Charlatte of America Inc; PTC SAS; Secmair SAS; and Mathieu SA.

The US Justice Department and EPA’s complaint alleged that between 2014 and 2018, Fayat and its subsidiaries illegally sold hundreds of pavers, rollers, and other non-road equipment containing diesel engines that failed to meet Clean Air Act emission requirements.

It also alleged that Fayat failed to meet Clean Air Act labelling and reporting requirements.

Under the terms of the settlement, Fayat will pay a civil penalty of $11 million and complete a project to reduce the harm caused by excess nitrogen oxides and particulate matter emissions.

Assistant attorney general Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) said, “Fayat failed to ensure that the equipment it introduced into the United States market complied with Clean Air Act requirements designed to protect the public’s health from harmful emissions.

“We will not tolerate violations of Clean Air Act standards. The settlement requires both a substantial civil penalty and a project that will reduce emissions in the Mobile, Alabama, area and contribute to improved public health.”

Acting assistant administrator Cecil Rodrigues for EPA’s Office of Enforcement and Compliance Assurance added, “Fayat’s import of nonroad vehicles with outdated diesel engines violates the Clean Air Act standards for emissions from mobile sources and threatened exposure to harmful diesel air emissions.

“Today’s announcement demonstrates that EPA will hold accountable companies that put outdated equipment into commerce that pollutes the air and risks exposing communities to toxic air pollutants.”

The project mentioned by Todd Kim involves the retrofit a tugboat currently in service in Mobile, Alabama. Retrofitting the tugboat includes removing and destroying two engines and two auxiliary generators and replacing them with two new engines and two new generators that meet current emission controls.

Fayat has been contacted for comment.