Industrial grease supply companies are being fined up to €50,000 after the European Commission fined them for “gross waste” and other “significant deficiencies” in their operations.
Key points:The fines were imposed after an investigation found that several companies “were not following appropriate practices”Industrial grease suppliers are being hit with €50k fines after an EU investigation found “significant gaps” in industrial grease supply chainThe fine is the result of a probe into companies in France and Italy, where inspectors found “gross wastes” and “significant shortcomings” in the operation of their suppliersIndustrial products such as industrial grease, which is used to lubricate products, are widely used by companies across Europe.
However, there is currently a lack of reliable information on the extent of the problem, with suppliers unable to track which products they are using, according to the Commission.
The Commission found that companies had not tracked which products were used, nor were they able to confirm whether they were using the correct grease or other industrial products, according a statement.
The European Commission has fined the following companies €50K each over industrial grease breaches:In addition to the fines imposed on the companies, the Commission has launched an investigation into the issue.
“The European Food Safety Authority (EFSA) is aware of the Commission’s investigation into industrial grease supplier ‘Dipster’ and is examining the evidence.
EFSA will provide advice in due course,” it said.
A spokesperson for the company told News24 that the fine was “not related to the EU investigation”.
“Dipsters is an independent company and does not have any links to any other company,” the spokesperson added.
The investigation found significant gaps in the way the companies operated and the quality of the products used.
According to the investigation, the company supplied industrial grease to a number of industrial companies in Italy and France, with the most serious breaches in France taking place in 2016 and 2017.
The company also supplied industrial products such like the “green” interior coating to several major industrial suppliers in Germany and Spain, with gaps in use of these products.
The inspectors found the company did not follow proper procedures, as well as failed to ensure that its suppliers complied with EU rules on the protection of the environment.
The report found that the company also failed to properly track which of its customers were using its products.
These gaps meant that inspectors found that Dipster was using industrial grease products that were “significantly” different from those which were being sold, with one example in particular indicating that Dampster’s products used a “high-temperature adhesive”.
Dipsters spokesman Mark Rippo said the company had “immediately” apologised to its customers.
“Dampster is aware that the Commission report has been made public and we have been making efforts to address the issues raised in the report,” he said.
“We have made substantial progress in the last few weeks and are in the process of fully remedying the issue, which we will share further details about with our customers and our European suppliers in due time.”
DipSters was also fined €10,000 by the European Food Inspection Authority (FEI), which is the EU body that supervises food supply chain safety.
In an emailed statement to News24, FEI said it was satisfied with the report’s findings and had ordered the company to pay a €50 per unit penalty.
“These serious breaches of EU food safety rules, which affect many industrial companies across the European Union, require immediate and effective action and are very serious,” it added.
“In the light of these findings, the Government has decided to impose fines of up to 5% of annual turnover.”