Tuesday July 11, 2017
09:11 PM GMT+8

Advertisement

More stories

File picture shows an employee looking at the propeller of a Scorpene submarine at the industrial site of the naval defence company and shipbuilder DCNS in La Montagne near Nantes, France, April 26, 2016. — Reuters pic File picture shows an employee looking at the propeller of a Scorpene submarine at the industrial site of the naval defence company and shipbuilder DCNS in La Montagne near Nantes, France, April 26, 2016. — Reuters pic KUALA LUMPUR, July 11 — Boustead Heavy Industries Corp Bhd’s (BHIC) indirect unit, Boustead DCNS Naval Corp Sdn Bhd (BDNC), has received a letter from the Ministry of Defence claiming against BDNC a liquidated damages amounting to RM53.2 million and 19.3 million euro.

The claim was for the breach of obligations under the in-service support for the Royal Malaysian Navy Scorpene Submarines Contract (ISS contract), it said in a filing to Bursa Malaysia today.

“BDNC is currently responding to the letter of claim. The board of BHIC is of the opinion that BDNC has adequate basis to defend and to appeal against the claim,” it said.

BDNC is a joint-venture company between BHIC’s subsidiary, BHIC Defence Technologies Sdn Bhd (60 per cent) and DCNS S.A. (40 per cent).

BHIC said the ISS contract was awarded to BDNC by the government, represented by the Defence Ministry, through a letter of award dated Aug 12, 2010.

“The claim is expected to have a material financial and operational impact on the BHIC Group for the financial year ending Dec 31, 2017,” it said. — Bernama

More Trending Videos

Trending Videos

Advertisement

MMO Instagram

Tweets by @themmailonline