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.
Outotec provides leading technologies and services for the sustainable use of Earth’s natural resources. As the global leader in minerals and metals processing technology, Outotec has developed many breakthrough technologies over the decades. The company also provides innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. Outotec shares are listed on NASDAQ OMX Helsinki. www.outotec.com