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.