Friday 29 Mar 2024
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KUALA LUMPUR (Oct 5): Zelan Bhd said it has been slapped with a  US$1.15 million (RM4.77 million) claim by Chinese power equipment maker Dongfang Electric Corp in relation with a coal-fired steam power plant project in Indonesia.

Zelan said its wholly-owned unit Zelan Holdings (M) Sdn Bhd (ZHSB) received a notice of arbitration today in respect of disputes and differences arising from a 2014 agreement between ZHSB and Dongfang.

“Zelan shall take all necessary steps to defend or safeguard ZHSB’s interests in the arbitration proceedings, including but not limited to seeking legal advice on the merits of the claims by Dongfang,” it said in a stock exchange filing.

According to Zelan’s website, the group was participating in the  power plant project, located in Rembang, Central Java, via a 70%-owned consortium that was awarded a US$560 million engineering, procurement, construction and commissioning contract.

In 2007, it announced that it had awarded a RM770 million contract to Dongfang for the supply of boilers, turbines and generators to the Rembang project.

Shares of Zelan rose half a sen or 9.09% today to close at six sen, giving it a market capitalisation of RM50.69 million.

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