Inside information: Valmet notified of arbitration claim by Kronospan Energy S.A.
Inside information: Valmet notified of arbitration claim by Kronospan Energy S.A.
Valmet Oyj's stock exchange release (inside information) on November 9, 2026 at 18:15 p.m. EET
Kronospan Energy S.A. has filed a request for arbitration against Valmet Technologies Oy, which is a subsidiary of Valmet. The arbitration concerns the Purchase Agreement between Kronospan Energy S.A. and Valmet Technologies Oy dated January 18, 2022 for delivery of a biomass-fired heat and power plant ("CHP3") as specified under the Purchase Agreement.The Take-Over of CHP3 was July 12, 2024. Typically, the price of a project with a similar scope is approximately EUR 100 million.
The dispute relates primarily to alleged performance issues and defects in the CHP3. Valmet Technologies Oy contests the allegations and maintains that CHP3 met the agreed performance requirements when operated with the agreed fuel and otherwise as specified in the Purchase Agreement. Valmet has extensive experience in successfully delivering energy solutions to customers globally. Valmet considers the claims brought by Kronospan Energy S.A. to be unfounded and is confident in its position and in its ability to fully defend against the claims in the arbitration.
Valmet Technologies Oy disputes the claims brought by Kronospan Energy S.A. and will also actively pursue claims of its own against Kronospan Energy S.A. The preliminary monetary claims put forward by Kronospan Energy S.A. amount to approximately EUR 130 million. The majority of claims are for damages for loss in value of CHP3 in the amount of EUR 102 million and lost profit of EUR 23 million at the Sanem site in Luxembourg where the CHP3 was installed. Kronospan Energy S.A. reserves the right to supplement and amend its claims, and to advance further claims.
Valmet's management does not expect to the best of its current understanding any material adverse impacts on its operations or financial position due to this arbitration. This early assessment takes into account the grounds currently presented.
Further information:
Rasmus Oksala, General Counsel, Valmet, tel. +358 50 3173 830
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Pia Aaltonen-Forsell
CFO
Pekka Rouhiainen
VP, Investor Relations
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