25th Jul 2014 10:39
LONDON (Alliance News) - Accsys Technologies PLC Friday said it is "disappointed" that an arbitration tribunal has ruled that terminating Diamond Wood China Ltd's Accoya Wood exclusive licence was invalid.
Last year, the chemical technology group terminated its license with Diamond Wood, alleging that the company had failed to comply with contractual obligations. Diamond Wood subsequently served a notice of arbitration challenging Accsys and sought damages of over EUR140 million.
Accoya wood is an acetylated wood used for external building cladding and other uses. The treatment claims to make softwood as durable as hard wood.
In response to the claim against Accsys, the tribunal has ruled that Diamond Wood can only claim for limited damages, if any, up to a maximum of EUR250,000.
However, Accsys on Friday said it is "disappointed to announce that the tribunal has ruled that the Licence Agreement is to continue in full force and effect."
As a result of the award, and with immediate effect, Diamond Wood has the responsibility for all Accoya Wood promotion marketing and selling to all customers within the licensed territories in the Far East, which excludes various countries including Japan and South Korea, for which Accsys retains rights.
It also means Diamond Wood is obliged to resume its endeavours towards the construction of an Accoya manufacturing facility in the Far East.
Accsys Technologies shares were traded up 7.7% at 0.210 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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