Posted on 23 Aug 2016
Ann Joo Resources Bhd’s wholly-owned subsidiary, Ann Joo Integrated Steel Sdn Bhd (AJIS), has filed a statement of claim on Aug 18 against Tangshan Iron & Steel International Engineering Technology Co. Ltd in the matter of arbitration under the Kuala Lumpur Regional Centre for Arbitration Rules.
In its filing to Bursa Malaysia today, Ann Joo said the claim by AJIS was in relation to the contract dated Jan 15, 2008, that it had entered into with Tangshan Iron for the project known as “Design, Supply, Install, Construct, Supervise, Train, Test and Commission a Blast Furnace Complex comprising Blast Furnace and Auxiliaries, a Sinter Plant and a Raw Material Yard” situated at Lots 1227 & 78 and Parts of Lot 1226 and 1236 at the Perai Industrial Estate in Penang.
The reliefs claimed total US$16.9 million (RM68 million) and consists of US$10.2 million as liquidated ascertained damages on account of Tangshan Iron’s delay in completing the works as per the contract, US$5.47 million for various breaches and non performance of the contract by Tangshan Iron, and US$1.25 million for the refund of excess or mistaken payment.
Based in China, Tangshan Iron produces and distributes carbon steel products.
Ann Joo, which is involved in the manufacturing and trading of steel, saw its share price fall seven sen or 4% to RM1.66 today, for a market capitalisation of RM830.93 million.
