The company has also agreed to pay a $127,500 penalty in order to settle claims by the US Environmental Protection Agency and the US Department of Justice that it violated federal Clean Air laws.

Polyfoam will install a new air pollution control system for volatile organic compound (VOC) emissions at its facility.

At Northbridge facility, the company uses expandable polystyrene beads, which emit VOCs, in order to manufacture shape-molded foam products such as insulated food-shipping containers and protective foam packaging for electronic appliances.

The US’ case complaint asserts that Polyfoam miscalculated and underreported its VOC emissions from at least 2002 to the present.

Polyfoam’s actual VOC emissions exceeded 50 tons per year in each of these years, in violation of the company’s state air permits.

Polyfoam also triggered Clean Air Act requirements for state-of-the-art pollution limits that the company failed to meet.

Under the settlement, which requires court approval, Polyfoam will meet a strict new VOC emission limit by installing a pollution control system that will incinerate VOC emissions with a regenerative thermal oxidizer.

The new system will reduce VOC emissions from Polyfoam’s manufacturing processes by about 85%. Polyfoam will also obtain new federally-enforceable air permits reflecting its new VOC control requirements.