Da Ming International's (HKG:1090) unit Daming Heavy Industry received a final arbitration award dated July 29 from the Arbitration Institute of the Finland Chamber of Commerce, a Monday Hong Kong bourse filing showed.

The case is related to a dispute over compensation for costs related to certain alleged defects found in pressure vessels supplied by Daming Heavy Industry to a third-party purchaser under a purchase contract completed July 2020.

Repeated negotiations between the parties since March 2023, when the customer sent Daming a claim letter, failed, and an arbitral tribunal found Daming in breach of the contract terms and warranties.

Under the award, Daming is required to pay 6.5 million euro in compensation for the claimant's losses and expenses, 1.3 million euro in outstanding default interest on the losses and expenses, and 430,000 euro in tribunal and arbitration-related fees among other dues.

The company is seeking legal advice on the possibility of setting aside the award and will make further announcements as and when needed.