The 63-year-old man became entangled in equipment used to strip coatings from metal pipes.
The court heard that despite attempts by colleagues and paramedics to save his life, he died at the scene.
A senior North Yorkshire councilor said his death could have been prevented if his employer, Cleveland Steel and Tubes, had installed suitable safety equipment.
The employee was working at the company's premises at Dalton Airfield, near Thirsk, when the incident occurred in November 2022.
Cleveland Steel and Tubes Ltd pleaded guilty to one offense under regulation 11(1) of the Supply and Use of Work Equipment Regulations 1998. The charges related to negligence in on-site work practices, including failing to ensure that dangerous parts of machinery were properly installed. Protected.
He was fined £250,000 and ordered to pay North Yorkshire Council's prosecution costs of £9,796 and a statutory surcharge of £2,000 at Hull Magistrates' Court.
North Yorkshire Council said an investigation by its environmental health team, working with specialist inspectors from the Health and Safety Executive, found the machine was not fitted with suitable guards to prevent people from coming into contact with its moving parts. said.
The city council submitted a prohibition notice banning the use of the equipment until suitable protection was installed, which the company installed in June 2023.
North Yorkshire Council’s executive officer for regulatory services, Cllr Greg White, said: “Our condolences go out to the family and friends of the man who lost his life in this incident.
“We hope that the fact that we have taken this action demonstrates our commitment to ensuring that people can work in a safe and secure environment.
“We believe this fatal accident could have been prevented if our company had followed safe working practices and procedures, and in particular had ensured that the dangerous moving parts of the machinery in question were protected.
“We remind all businesses that the health, safety and welfare of their employees is of paramount importance and they have a duty to ensure that equipment is safe to use and that its risks have been properly assessed.
“North Yorkshire Council will not hesitate to take action if we find that these standards are not being met.”