Arbitration proceeds, injunctions commenced against Sunvic unit

SUNVIC Chemical Holdings on Friday announced that arbitration proceedings and injunctions have commenced against its wholly-owned subsidiary Taixing Jurong Chemical for a sum amounting to 404 million yuan (S$80.5 million) by Taixing Sunke Chemicals on Aug 27, 2018.

Taixing Sunke is a 45 to 55 per cent joint venture between Taixing Jurong and Arkema Asie SAS respectively.

The sum of 404 million yuan was due and owed by Taixing Jurong to Taixing Sunke in respect of acrylic acid and acrylate esters provided.

Taixing Sunke had also applied injunctions against Taixing Jurong to freeze effectively all of the assets of Taixing Jurong up to the amount claimed under the arbitration proceedings, which was granted the injunctions by Taizhou City Intermediate People's Courts of the People's Republic of China on Aug 31.

According to Sunvic Chemical Holdings, the management has been actively engaging in discussions with Taixing Sunke since end-August 2018 to resolve the matter.

It said that it is trying to obtain more information relating to the arbitration proceedings and the injunctions, and will make the relevant announcements if there are further developments.