Semperit loses distribution court case to Thai partner

Vienna – Austrian rubber engineering company Semperit Technische Produkte GmbH has lost a court case brought against it by Sri Trang Agro-Industry Public Co., its Thai joint-venture partner, over the distribution of rubber gloves in Austria and Europe.

Austria’s Cartel Court ruled on 27 June that an agreement signed between Semperit and Sri Trang Agro-Industry Public Co. Ltd to provide exclusive distribution rights for the Vienna-based company constituted “an infringement of competition law applicable in Austria and the EU.”

According to a statement by Sri Trang Agro, Semperit had earlier filed arbitral claims against the Thai company and their joint venture company Siam Sempermed Corp. Ltd for breach of the JV agreement.

One of the disputed issues was Semperit’s allegation that Sri Trang and Siam Sempermed breached the agreement for non-competition in Europe, which Semperit said granted it exclusive right to distribute rubber gloves produced by the JV in Europe.

Sri Trang, therefore, raised the issue with European competition authorities.

According to Sri Trang, the court has ordered that “Semperit be forbidden from relying on such agreement” as it was against the European competition law.

Semperit can appeal the ruling.