DISPUTE BETWEEN GLASTON AND CUSTOMER PROCEEDING TO ARBITRATION
Glaston Corporation Insider information 30 August 2019 at 17.00
A dispute between Glaston and its customer regarding a heat treatment machine acquired by the customer, is proceeding to arbitration. The customer claims the contract to be terminated and a compensation of approximately EUR 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 EUR 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, that a resolution to the dispute is expected approximately during the first half of year 2020.
Taina Tirkkonen, General Counsel and SVP, Human Resources, tel. +358 10 500 6934
Glaston in brief
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of emerging technologies integrating intelligence to glass.
As of April 2019, Bystronic glass is part of Glaston Group. Together we are committed to providing our clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. We operate globally with manufacturing, services and sales offices in 12 countries. Glaston’s shares (GLA1V) are listed on NASDAQ Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.