DA MING INT'L (01090.HK): Unit to Pay EUR 6.47 Million in Arbitration
NewTimeSpace News: On 28 September 2026, Da Ming International Holdings Limited (stock code: 01090.HK) announced that Daming Heavy Industry Co., Ltd. (Daming Heavy Industry), an indirect wholly-owned subsidiary of the Company, received a final arbitration award dated 29 July 2026 from the Arbitration Institute of the Finland Chamber of Commerce. The case arose out of a dispute on the compensation of costs in relation to certain alleged defects found in pressure vessels supplied by Daming Heavy Industry to a third-party purchaser under a purchase contract concluded on 8 July 2020.
The arbitral tribunal found that Daming Heavy Industry breached its warranty obligations under the Contract by failing to manufacture the digester top part flange in accordance with the requirements of the Contract and free of defects, breached the Contract by delivering goods with a number of defective welds, and breached its warranty obligations by failing to deliver goods free of defects. Pursuant to the Award, Daming Heavy Industry must pay EUR 6,471,425.17 to the Claimant as compensation for losses and expenses, plus EUR 1,323,005.99 representing default interest quantified up to 30 June 2026 and default interest accruing on EUR 6,471,425.17 from 1 July 2026; it must also solely bear all costs of the arbitration amounting to EUR 430,000.00, pay to the Claimant party representation costs of EUR 1,812,941.28, SEK 240,157.80 and GBP 106,513.50, and compensate the Claimant totalling EUR 215,000.00.
The announcement stated that Daming Heavy Industry submitted a post-award request on 26 August 2026, which the arbitral tribunal denied in full on 25 September 2026 while ordering it to solely bear the related costs, being arbitral tribunal's total fees of EUR 9,359.72 and compensation of EUR 4,700 to the Claimant. The Board was of the view that the scope of potential compensation was controllable and that the outcome of the arbitration was uncertain before the Award was received. As at the date of the announcement, the Company is seeking legal advice on the possibility of setting aside the Award.
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