3 Sep 2014
ERJ staff report (TP)
Vienna – Semperit AG Holding has requested international arbitration to resolve the ongoing conflict with its joint venture (JV) partner in Thailand.
As ERJ reported in July, Semperit initiated legal proceedings against Sri Trang Agro Industry Group (Sri Trang) as “the partnership has no longer been able to fulfill current requirements for increased transparency as well as the necessary objectivity, corporate governance and accountability of management decisions”.
On 2 September, Semperit’s management board began international arbitration proceedings against Sri Trang, as well as another JV company – Siam Sempermed Corporation Ltd.
Semperit said it is “suing regarding determination of and compensation for damages caused by the detrimental behaviour of the JV partner”.
The arbitration will be conducted under the Rules of the International Chamber of Commerce before a tribunal in Zurich, Switzerland.
Update: ERJ spoke with Martina Büchele, head of group communications at Semperit, who said the issue was also down to "different points of view". She said the JV needed to be "fully compliant with the contract".
The start date of the Zurich tribunal has not been decided by Semperit yet.
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