ASLR Fabrication Services, of Opal Way, Stone Business Park, Stone, Staffs admitted breaching the Provision and Use of Work Equipment Regulations 1998, Regulation 11(1) and was fined £6,000.
It also admitted breaching the Management of Health and Safety at Work Regulations 1999, Regulation 3(1) (a) and was again fined £6,000.
The Heath and Safety Executive (HSE) was awarded full costs of £1,377.
Stafford Magistrates' Court heard Craig Horton, 26, of Stone, was working for ASLR Fabrication Services on 12 September 2014.
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He was carrying out a process using a pipe threading machine for cutting 'male' threads onto the end of steel pipework.
He had also used the piece of machinery for the first time the previous day.
Wearing a 'hoody' type top, Mr Horton placed the pipe end into the jaws of the threading machine and depressed the foot pedal.
As the pipe began to spin, it snagged on his clothing and dragged Mr Horton into the machine, wrapping him around the pipe.
His arm was broken in two places and required an operation to fit two metal plates, as well as 12 pins having to be inserted inside his arm.
HSE told the court a risk assessment should have been carried out and effective clamps fitted to hold the pipe or guarding/safety devices in place to prevent access to the dangerous rotating pipe.
HSE inspector Kath Blunt said: "This accident was entirely preventable. This could very easily have been a fatality.
"It is imperative that risk assessments are carried out in order to identify significant risks and suitable control measures to be put in place to eliminate or reduce such risks."
(LM/CD)
