Zelan gets arbitration notice from Hitachi

PETALING JAYA: Engineering and construction group Zelan Bhd’s wholly owned subsidiary Zelan Holdings (M) Sdn Bhd (ZHSB) has received an arbitration notice from Hitachi Ltd on disputes and differences arising from a sub-contract to supply, deliver, install, test and commission a water cooled chiller.
Hitachi is claiming against ZHSB, an aggregate amount of AED15.21 million (RM16.11 million) for the works done and materials on-site, materials off-site and subcontractor’s claims, suspension cost, demobilisation cost and interest on amounts certified.
ZHSB had on April 16 received the request for arbitration from the Secretariat of the International Court of Arbitration, International Chamber of Commerce.
The group said in a bourse filing that the dispute was for the Package No. MEP/005 sub-contract between Hitachi’s unit Hitachi Plant Technologies Ltd and ZHSB dated May 15, 2012, for the Meena Plaza mixed use development project in Abu Dhabi, United Arab Emirates.
“ZHSB 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 Hitachi,” said the group’s board of directors.

Zelan’s shares gained 5% to 10.5sen with some 1.47million shares done.