Kinesio disputes noncompliance, but pays $530K penalty to city

The company behind a popular brand of therapeutic tape used by athletes disputes that it was out of compliance with airquality regulations and permitting requirements required by the city of Albuquerque.

Rather than contest the allegations and demand an administrative hearing, Kinesio Holding Corp. and its, affiliate Cre-Med, instead agreed to settle with the city and pay a civil penalty of $530,000, the business said in a statement released this week.

Kinesio operates a manufacturing facility at 4101 Masthead NE.

An official with the city’s air-quality program said in a Journal article last week that the size of the penalty imposed against Kinesio was “the most significant” one assessed during his time with the Environmental Health Department. Kinesio agreed to make an initial payment of $30,000 and will cover the rest in payments over a twoyear period, the official said.

The company declined comment last week and instead issued the statement on Wednesday.

According to Kinesio, the confusion dates to 2011 when it decided to establish manufacturing operations in Albuquerque. It “applied for — and obtained — a source registration for its tape manufacturing line, which it understood was the appropriate permit needed for the operations,” the statement said.

“When it was determined several years later that a different permit was required for Kinesio’s manufacturing operations, Kinesio cooperated fully with the city’s (Environmental Health Department) in applying for the necessary construction permit,” according to the statement.

As the city was evaluating Kinesio’s application, it separately issued a compliance order contending Kinesio violated state and federal air quality rules, including claims the business was out of compliance with permitting, applicable regulations and notification requirements dating to 2011, the company said.

It said air-quality regulations and permitting requirements “are complex, and Kinesio did not knowingly violate the regulations or requirements.”

The permit was issued in February, and Kinesio has installed the required air-quality control devices.