Tadano Group Reaches EPA and DOJ Settlement Over Clean Air Act TPEM Compliance

30 Second Takeaway

The Tadano Group has reached an agreement with the U.S. Environmental Protection Agency (EPA) and Department of Justice (DOJ) regarding alleged violations of the Transition Program for Equipment Manufacturers (TPEM) under the U.S. Clean Air Act. The settlement includes a $40 million civil penalty and a $3.2 million mitigation project in Texas, with Tadano confirming that the matter does not affect crane customers and has no impact on current or future crane sales.

EPA and DOJ agreement resolves TPEM matter

The Tadano Group has finalised a settlement with the EPA and DOJ related to alleged non-compliance with the TPEM program, which applies to equipment manufacturers under the U.S. Clean Air Act.

The regulations apply only to Tadano as a crane manufacturer and do not relate to crane owners or operators. According to Tadano, the settlement fully resolves the matter previously disclosed to regulators.

$40 million penalty and Texas mitigation project

Under the terms of the agreement:

• Tadano will pay a $40 million civil penalty

• The group will contribute $3.2 million toward an environmental mitigation project in Texas

The company confirmed that it had already booked a financial reserve in prior financial years, meaning the settlement has no current financial impact on the group.

Background to the TPEM investigation

The issue was self-reported to the EPA and publicly disclosed by Tadano in a press release dated January 19, 2018. An internal investigation indicated that the group may not have met all requirements of the TPEM program for a portion of engines mounted on Tadano mobile cranes imported into and sold in the United States.

Since that disclosure, Tadano confirmed that all cranes imported or sold in the US meet applicable exhaust emissions requirements.

No impact on customers or current crane sales

Tadano stated that the settlement:

• Has no impact on cranes currently being sold

• Has no impact on cranes sold at any time after 2018

• Does not affect crane customers or operators

The company emphasised that all compliance issues were addressed following the self-reporting.

Strengthened compliance and governance framework

Since identifying the issue, the Tadano Group said it has implemented significant organisational and governance changes to prevent recurrence.

Key actions include:

• Revising Tadano Group Core Values to “C+SQE: Compliance first, then Safety, Quality, and Efficiency”

• Strengthening the group governance structure

• Appointing specialised compliance personnel

• Clarifying roles and responsibilities across group companies and departments related to product development and regulatory compliance

Ongoing focus on global regulatory compliance

Tadano said it will continue strengthening its legal and regulatory compliance capabilities at a global level, with a focus on ensuring adherence to laws and regulations in the United States and all other countries where it imports, sells, and services lifting equipment.

About Tadano Group

The Tadano Group is a global manufacturer of mobile cranes, rough-terrain cranes, all-terrain cranes, telescopic crawler cranes, and lifting solutions serving construction, industrial, and infrastructure markets worldwide.

Tadano operates internationally with a focus on product safety, regulatory compliance, and lifecycle support for lifting equipment.

Website: https://www.tadano.com

Frequently Asked Questions

What was the TPEM issue related to?

It concerned alleged non-compliance with the Transition Program for Equipment Manufacturers (TPEM) under the U.S. Clean Air Act, applicable only to manufacturers.

Does this affect crane owners or operators?

No. The matter does not affect crane customers, owners, or operators.

When was the issue first disclosed?

The issue was self-reported and publicly disclosed on January 19, 2018.

Are Tadano cranes currently compliant with US emissions rules?

Yes. Tadano confirmed that all cranes imported or sold in the US since 2018 meet applicable exhaust emissions requirements.

Does the settlement impact current Tadano crane sales?

No. The company stated there is no impact on current or future sales.