Glaston customer dispute to go to arbitration

Published 30th August, 2019 by Greg Morris

A dispute between Glaston and its customer regarding a heat treatment machine acquired by the customer, is to proceed to arbitration.

The customer claims the contract to be terminated and a compensation of approximately €3.5 million, which would cover the acquisition price of the machine as well as, mainly indirect, damages caused to the customer.

In addition, as a consequence of the termination of the contract, the ownership of the machine would be transferred back to Glaston.

Glaston denies the customer’s claims and finds them unfounded. The contract includes a limitation of liability concerning indirect damages and termination of the contract is only possible due to a material breach of contract.

Based on the claim Glaston makes a provision of €0.3 million. The issue has no impact on the company’s full-year 2019 guidance.

The arbitration will take place in Helsinki and Finnish law applies to the contract. Glaston estimates a resolution to the dispute is expected during the first half of 2020.

Greg Morris

Glass International Editor

Greg Morris has been editor of Glass International and organiser of the Glassman conferences since 2012, specialising in glass packaging. Prior to this he spent five years working in newspaper journalism.