WorkSafe says a Southland factory where a worker's arm was trapped in heavy machinery did not have a proper guard rail.
The man's arm was drawn into an industrial roller at fibreboard manufacturing company Dongwha's wood processing plant in Gore. The worker lost his balance while cleaning the machinery in December 2016.
He needed surgery for three breaks to his left arm, and was off work for three-and-a-half months.
A Worksafe investigation said the guard rail was not good enough, and the company did not have a safe operating plan for the equipment.
As an alternative to court proceedings, Dongwha agreed to what is called an "enforceable undertaking", in which WorkSafe monitors a legally binding voluntary agreement.
Dongwha's conditions included agreeing to pay compensation to the victim, providing more staff training, and establishing a safety forum for the wood processing industry.