Sunseeker fined over £350,000 for ‘blood’ teak imports
Yacht maker Sunseeker International Limited has been fined more than £350,000 after breaking import laws for exotic timber such as teak.
The Poole, UK-based company pleaded guilty to breaching a number of UK timber regulations which are designed to tackle illegal logging worldwide, including failures of due diligence and record keeping.
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The judge at Bournemouth Crown Court fined Sunseeker £240,000 and also made a confiscation order in the sum of £66,950.64 and awarded prosecution costs of £51,619.
The sentencing followed an investigation by the Office for Product Safety and Standards (OPSS), part of the Department for Business and Trade.
Sunseeker International Limited was charged over the timber imports it made in 2021 and 2022, including teak from Myanmar, wenge from Africa and oak from Europe.
OPSS Chief Executive Graham Russell said: “Protecting our natural world is a priority [for Government].
“OPSS will continue to take proportionate action to hold businesses to account where we identify non-compliance with environmental obligations, including criminal prosecution.”
The London-based Environmental Investigation Agency (EIA), which first exposed Sunseeker’s use of non-compliant Myanmar teak in 2018, hailed it as a landmark ruling, the first of its kind since the UK Timber Regulation replaced the EU Timber Regulation after Brexit.
EIA Forests Campaigner Leader Faith Doherty said: “These sentences send a clear and unequivocal message to other luxury yacht manufacturers, both in the UK and around the world, that using blood teak from conflict-torn Myanmar is totally unacceptable and will cost them dearly in the end.
“As well as actually implementing the UK Timber Regulation, the amount of process and legal time within the judiciary reflects the importance of environmental crime and the impact this criminality has.“
In a statement, Sunseeker said its failure to exercise due diligence was a result of the switch from EU Timber Regulations to the UK laws on 1 January 2021. It said the effect of Brexit was to “impose additional due diligence obligations on Sunseeker whenever it procured timber or timber products from the EU, duplicating the due diligence obligations of its EU-based suppliers”.
“The Sunseeker Board regrets the company’s failure in meeting its responsibilities under the UKTR and underlines its ongoing commitment to compliance with laws and regulations,” the statement added.
In October, Sunseeker was acquired by Orienta Capital Partners and Miami investment firm Lionheart Capital. It was previously 92% owned by the Chinese Dalian Wanda Group, a real estate conglomerate, which bought it in 2013.
“We are confident that under the new leadership, Sunseeker will thrive and reach new heights”, said Andrea Frabetti, chief executive of Sunseeker at the time.
“Our goal remains to deliver exceptional yachts that embody luxury, performance and innovation, while honouring the legacy and vision of our founders.”
