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11 min ago 2 min read
Linde Malaysia has filed an arbitration claim against Lion Steel.
Linde Malaysia alleges that Lion Steel breached a gas supply agreement for the supply of oxygen, nitrogen and argon, dated 16 March 2022 between the parties, according to a statement on the Bursa Malaysia stock exchange website.
The industrial gases major is seeking a declaration that the agreement remains valid and subsisting until 30 June 2024; that Lion Steel is liable under the agreement to pay all charges until the same date; payment from October 2022 up to 30 June 2024 of RM23,903,583.35 ($5.7m) or in the alternative, damages for breach of contract; interest; costs; and other reliefs deemed just and proper, according to the statement.
Lion Steel, a wholly owned subsidiary of Lion Industries Corporation, intends to defend the claim, the statement adds, and is seeking legal advice on the merits of Linde’s claim and on the courses of action available to it.
The company will make further announcements on material developments as and when they arise.
Malaysia media reports that it is the third arbitration claim from Linde involving Lion group companies, following cases with Amsteel Mills and Secomex Manufacturing, and combined the claims amount to about RM120.65m ($29m).
Lion Steel specialises in long and flat steel products, hot metallised iron, and steel office equipment. The group operates two primary large-scale steel mill complexes in Selangor in the west coast state.
