Court of Arbitration rules on contract dispute between Neste Oil and
YIT
(Thomson Reuters ONE) - The Finnish Court of Arbitration has issued Arbitration Award on thecontract dispute between Neste Oil and YIT Industrial and NetworkServices. The Court has found that the contract was not completedaccording to the agreed timetable for reasons attributable to YIT andhas ruled as a result that YIT must pay Neste Oil the full delaypenalties specified in the contract between the two companies, atotal of some EUR 6.5 million. The Court has limited YIT's liabilityfor delay, however, to the maximum amount of the delay penalties.This limitation was based on the General Terms for Building Contractsin Finland.The Court of Arbitration has also ruled that YIT must pay damages toNeste Oil in the sum of EUR 500,000 for failing to inform Neste Oilof the delays affecting the contract that YIT was aware of. Under theterms of the ruling, YIT will also be required to pay Neste Oil atotal of some EUR 370,000 in respect of other breaches of contract.The Court of Arbitration rejected all the claims lodged by YITrelated to prolongation of the contract period.The Court has also ruled that Neste Oil must pay a total ofapproximately EUR 5.1 million to YIT in respect of contestedcontractual payments due to YIT. Neste Oil had also thus far withhelduncontested contractual payments due to YIT, totaling some EUR 3.6million.The dispute between Neste Oil and YIT relates to disagreements linkedto the final financial settlement of mechanical installation work ondiesel production line 4 at Neste Oil's Porvoo refinery, which wascompleted and came on stream in summer 2007. The dispute was putbefore the Court of Arbitration in April 2008.Neste Oil claimed total damages of EUR 107 million from YIT, of whichEUR 38.5 million related to contract delays and some EUR 68.5 millionto subsequent lost production. YIT lodged counter claims againstNeste Oil totaling some EUR 25 million, primarily based on workcarried out under the contract and additional costs incurred due toprolongation of the project. Both parties contested each other'sclaims.The Arbitration Award is final.Neste Oil CorporationHanna MaulaDirector, Corporate CommunicationsFurther information: General Counsel Matti Hautakangas, tel. +358(0)10 458 5350Neste Oil in briefNeste Oil Corporation is a refining and marketing companyconcentrating on low-emission, high-quality traffic fuels. Thecompany is the world's leading supplier of renewable diesel. NesteOil's refineries are located in Porvoo and Naantali in Finland andhave a combined crude oil refining capacity of approx. 260,000 bbl/d.The company had net sales of EUR 15 billion in 2008 and employsaround 5,300 people. Neste Oil's share is listed on NASDAQ OMXHelsinki.Neste Oil is included in the Dow Jones Sustainability World Index andthe Ethibel Pioneer Investment Register. The company has also beenawarded 'Best in Class' recognition for its social accountability byStorebrand and is included in Innovest's Global 100 list of theworld's most sustainable corporations. For further information, seewww.nesteoil.com.This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 01.10.2009 - 07:00 Uhr
Sprache: Deutsch
News-ID 6457
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