OUTOTEC OYJ PRESS RELEASE, DECEMBER 30, 2008 AT 4.15 PM
In its interim award the arbitral tribunal in Iowa, USA, has sustained Pattison Sand Company's claim of USD 10 million (approximately EUR 7 million) against Outotec and respectively rejected Outotec's counterclaim of USD 5 million related to Outotec's fracturing sand plant delivery in Clayton, Iowa. The interim award was unreasoned.
The estimated one-time effect of the arbitral award on Outotec's 2008 fourth quarter financial result is approximately EUR 9 million.
Outotec (formerly Outokumpu Technology) announced in August 2006 a contract with Pattison Sand Company for the design and turnkey delivery of a new hydraulic fracturing sand plant to Clayton, Iowa. The contract price was approximately EUR 14 million. In July 2007 Outotec withheld performance prior to the completion of the project due to unpaid invoices and dispute on the customer's responsibility in the project.
The final award is expected to be rendered upon January 16, 2009. Outotec's management investigates appropriate measures to be taken, including eventual appellate proceedings regarding the award.
For further information please contact:
Jari Rosendal, President - Minerals Processing division
tel. +358 20 529 2700, mobile +358 40 5951456
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, +358 400 817198