Rockford chimneys supply company will be held to account over carbon emissions for the first time in history.
The company, which employs 1,000 people, is among the first to have faced the prospect of paying a fine after a review by the federal Environment Protection Authority (EPA).
The Federal Court of Australia has yet to issue its final ruling on the case.
In September 2016, the EPA found that Rockford was in breach of the Clean Air Act when it said the chimneys supplied by the company emitted between 40 and 50 times the allowable maximum emissions.
The EPA found the company did not have the required permits and had failed to provide the necessary documentation to the EPA.
Rockford will be paid a $2 million penalty, and its assets will be frozen for up to 10 years.
The company has until May 25 to appeal the decision.
The company is one of the most visible examples of the climate crisis in Australia, with more than 40,000 tonnes of carbon emissions each year released to the atmosphere.
Environmentalists have said that if companies do not comply with pollution laws, they are likely to face fines and criminal penalties.
On Friday, Prime Minister Malcolm Turnbull said the company was “disgraceful” for continuing to “bribe” the EPA to issue an order that would “destroy jobs, drive up wages and undermine the national economy”.
Rockford is also one of several Australian businesses to have been fined for breaking emissions limits.
For more on the EPA’s decision to issue a finding against the company, watch the ABC’s Background Briefing.