Singapore Court of Appeal has affirmed that Malaysian steel maker Southern Steel is to receive MYR 82.57 million from Italian plant maker Danieli & C Officine Meccaniche, but it set aside the MYR 176.25 million in damages awarded by a Singapore Tribunal. Singapore CoA affirmed the Singapore Tribunal’s transfer order, which entailed that Southern Steel’s wholly owned subsidiary Southern HRC transfer a factory plant which Danieli contractually constructed for the former, back to the Italy based company. But the Singapore CoA also affirmed a repayment order which comprised a contract price of EUR 92.7 million minus EUR 15 million and MYR 270 million in the plant’s diminution in value, approximately MYR 82.57 million to be made by Danieli to Southern HRC. The damages of MYR 176.25 million to be paid to SHRC were set aside, however.Southern HRC had terminated the contract for the design, manufacture and supply of a factory plant for the production of hot rolled coils, as well as services agreement with Danieli in 2016, pushing the parties into arbitration. Subsequently, a Singaporean Tribunal in 2019 ruled in favor of Southern HRC and ordered for the contract and services agreement to be rescinded. It also ordered Danieli to repay Southern HRC the contract price minus the plant’s devaluation, as well as MYR 176.25 million in damages. In return, SHRC would transfer the plant, together with the additional equipment installed thereon, to Danieli.It was previously reported that Southern Steel terminated the contract as Danieli failed to remedy and resolve issues set out in the notice of termination, after the latter failed to fulfill its contractual obligations.Founded in 1963, Southern Steel Group has grown from a small galvanized iron sheet plant to a major steel manufacturing group. Today Southern Steel Group is an established producer of a wide range of high quality steel products including billets, steel bars, carbon steel wire rods, steel pipes, drawn wires, wire mesh, PC wires and PC strands. It is the biggest producer of wire products including wire mesh in Southeast Asia.
Singapore Court of Appeal has affirmed that Malaysian steel maker Southern Steel is to receive MYR 82.57 million from Italian plant maker Danieli & C Officine Meccaniche, but it set aside the MYR 176.25 million in damages awarded by a Singapore Tribunal. Singapore CoA affirmed the Singapore Tribunal’s transfer order, which entailed that Southern Steel’s wholly owned subsidiary Southern HRC transfer a factory plant which Danieli contractually constructed for the former, back to the Italy based company. But the Singapore CoA also affirmed a repayment order which comprised a contract price of EUR 92.7 million minus EUR 15 million and MYR 270 million in the plant’s diminution in value, approximately MYR 82.57 million to be made by Danieli to Southern HRC. The damages of MYR 176.25 million to be paid to SHRC were set aside, however.Southern HRC had terminated the contract for the design, manufacture and supply of a factory plant for the production of hot rolled coils, as well as services agreement with Danieli in 2016, pushing the parties into arbitration. Subsequently, a Singaporean Tribunal in 2019 ruled in favor of Southern HRC and ordered for the contract and services agreement to be rescinded. It also ordered Danieli to repay Southern HRC the contract price minus the plant’s devaluation, as well as MYR 176.25 million in damages. In return, SHRC would transfer the plant, together with the additional equipment installed thereon, to Danieli.It was previously reported that Southern Steel terminated the contract as Danieli failed to remedy and resolve issues set out in the notice of termination, after the latter failed to fulfill its contractual obligations.Founded in 1963, Southern Steel Group has grown from a small galvanized iron sheet plant to a major steel manufacturing group. Today Southern Steel Group is an established producer of a wide range of high quality steel products including billets, steel bars, carbon steel wire rods, steel pipes, drawn wires, wire mesh, PC wires and PC strands. It is the biggest producer of wire products including wire mesh in Southeast Asia.
