Darco Water's China Arm Sued by Shanghai Tongji Construction Over Substandard Equipment

MT Newswires

07/20

Darco Water Technologies (SGX:BLR) said its China-based subsidiary, Wuhan Kaidi Water Services, received writ and statement of claim from the Shanghai Yangpu District People's Court in relation to a case by Shanghai Tongji Construction, in early June, according to a Friday filing to the Singapore Bourse.

The suit relates to the equipment procurement contract for the Yuanyang Lake Wastewater Treatment Plant Project at Ningdong, wherein Shanghai Tongji claims, among other things, that certain equipment provided by Wuhan Kaidi did not meet the required technical and performance standards.

Shanghai Tongji claims that it has suffered losses as a result of the substandard equipment and has sought compensation amounting to 13.4 million yuan on a provisional basis, including 3.4 million yuan in equipment cost and 10 million yuan in resulting damages.

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