Daewoo sues Semen Bosowa

Thu, 05 Apr 2001 | Source: AFP

JAKARTA (AFP): South Korea's Daewoo Corp. and Daewoo UK Ltd. have filed a suit requesting the central Jakarta court to seize PT Semen Bosowa's cement plant on Sulawesi island, Daewoo's lawyer said Wednesday.

Lawyer Stephanus Haryanto claimed Semen Bosowa had failed to settle a US$25.4 million construction contract payment with Daewoo Corp. and Daewoo UK Ltd.

Haryanto told AFP financial news subsidiary AFX-Asia that Daewoo completed construction of the plant as agreed by both parties in 1996, since when the facility has been operational.

However, Semen Bosowa had yet to settle the construction contract, payment of which was due in June 1999.

He said Daewoo also requested Semen Bosowa compensate it for non-material costs of $3.5 million.

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