OUTOTEC OYJ STOCK EXCHANGE RELEASE MARCH 23, 2015 at 9.30 AM
Legal dispute regarding Outotec Flash Smelting technology and preliminary investigation about Outotec's market position in China
In 2005, Outotec agreed with Yanggu Xiangguang Copper Co. (Yanggu) on the delivery of engineering services, equipment and necessary licenses to design, construct and operate a copper smelter using Outotec Flash Smelting and Kennecott-Outotec Flash Converting processes. The smelter was commissioned in 2007 in China.
Outotec started an arbitration process at the ICC International Court of Arbitration against Yanggu in a dispute relating to license agreements on Flash Smelting and Flash Converting technologies and issued a press release about it on April 2, 2014. The company believes that Yanggu has copied Outotec's Flash Smelting technology and breached Outotec's IPRs and the terms of the license agreements between Outotec and Yanggu.
Yanggu has filed on March 20, 2015 an application for summons at the District Court of Shandong Province, P.R. China against Outotec for the abuse of a dominant market position, claiming approximately EUR 42 million as a compensation for their economic loss. Outotec finds these dominant market position allegations to be without merit. The dispute is not estimated to impact Outotec's financial guidance for 2015.
The Price Supervision and Anti-Monopoly Bureau of the National Development and Reform Commission of the P.R. China (NDRC) has started a preliminary investigation about Outotec's market position regarding the Flash Smelting and Flash Converting technologies in China. Outotec is fully cooperating with NDRC to provide the necessary information.
For further information please contact:
OUTOTEC
Nina Kiviranta, General Counsel
Tel. +358 20 529 2017
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198
Emails: firstname.lastname@outotec.com
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