OUTOTEC OYJ PRESS RELEASE SEPTEMBER 27, 2013 at 3:30 PM
Outotec and Sarda Energy and Minerals Ltd. enter into legal dispute over contractual obligations in a filter delivery
Indian based steel producer Sarda Energy and Minerals Ltd. (SEML) has submitted application for arbitration at the International Court of Arbitration against Outotec in a dispute regarding a filter delivery. The company claims compensation of approximately EUR 18 million from Outotec for loss of profit. Outotec finds these allegations to be completely without merit.
Larox Oyj (acquired by Outotec in 2010) agreed with Sarda Energy and Minerals Ltd. on the delivery of a pressure filter with related spare parts for SEML`s iron ore pellet plant in 2007. The contract value was approximately EUR 0.6 million. SEML claims that Larox has not fulfilled its contractual obligations. Larox has delivered the equipment and received delivery acceptance from the customer in 2009.
Nina Kiviranta, General Counsel: "These claims against Outotec are unfounded and we will defend our rights."
The arbitration is not expected to have an impact on Outotec`s financial guidance for 2013.
For further information please contact:
Nina Kiviranta, General Counsel
Tel. +358 20 529 2017
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198
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Source: Outotec Oyj via Thomson Reuters ONE