The court granted the plant's request and gave Danieli 30 days to voluntarily implement the decision. In the event of non-compliance, the order will be enforced against Danieli's assets in Russia, including Danieli Volga, Danieli's plant in Dzerzhinsk, Danieli Henschel Service LLC, a trading company, and Elsid-Cheda LLC, an industrial designer.
Novorossiysk Rolling Plant expects to take ownership of Danieli's assets in Russia if the dispute is resolved in its favour and the defendant fails to pay the debt after the court decision becomes applicable. In addition, Danieli will have to pay court costs in the amount of $2,178.
Danieli had demanded €2 million from the Novorossiysk Rolling Plant for breach of contract in its counterclaim, but the court rejected this demand. The court decision has not yet entered into force and can be appealed.
According to the contract signed in 2018, Danieli was supposed to supply the Novorossiysk Rolling Mill with a rolling mill with a capacity of 600,000 tonnes of rolled products per year, but the delivery did not take place.
In its cross-claim, Danieli demanded the recovery from the mill of the underpaid part of the contractual advance payment in the amount of EUR 1.379 million and penalties. The company representative justified his claim by the fact that, despite the suspension of equipment production, the company had signed contracts for the supply of some parts from its sub-suppliers.
In February 2020, Novorossiysk Rolling Plant acquired a production complex in Shakhty, Rostov region, owned by the previously bankrupt Rostov Electrometallurgical Plant LLC (REMZ) for $90 mln. REMZ used Danieli equipment in its operations.
The Novorossiysk Rolling Plant is part of the Novorosmetall group of companies, which includes scrap processing, truck depots, supply and service companies. The founder and owner of LLC Novorosmetall is LLC Novostal.
Comments
No comment yet.