NTN: Notice in relation to the final award of the arbitration
Resource from: NTN-SNR ROULEMENTS 13 Nov,2015
NTN-SNR ROULEMENTS (hereinafter referred to as “NTN-SNR”), the consolidated subsidiary of NTN Corporation, received the final award from Arbitration Institute of the Stockholm Chamber of Commerce (the Arbitral Tribunal) in relation to the arbitration proceeding regarding the problem of the bearings between NTN-SNR and Volvo Powertrain AB of Europe on 9th November, 2015, and please be informed as follows:
1. History of the Filing of the Arbitration Proceeding
NTN-SNR, on November 2012, was claimed that the bearings supplied by NTN-SNR did not comply with the specifications and caused damages, and a request for arbitration by Volvo Powertrain AB was filed against NTN-SNR. Although NTN-SNR has been alleging that the bearings comply with specification and did not have any problem, it is very regrettable that NTN-SNR’s allegations are not accepted.
2. Contents of the Final Award
NTN-SNR, on November 9, 2015, received the final award from the Arbitral Tribunal that accepts the Volvo Powertrain AB’s allegations and orders NTN-SNR to compensate for the damages as those occurring on and before May 31, 2014, etc., in the amount of approximately 94.2million US dollars (approximately 11.6 billion yen, at a rate of 123 yen per US dollar), as well as for the damages not yet assessed.
3. Outlook for the Future
The effect of the final award on the prospect of the consolidated results of NTN Corporation is now under investigation, and will be made public as soon as confirmation is completed.
(NTN-SNR ROULEMENTS)
