Evonik seeks arbitration in dispute over disposal of DMT producer

04 May 2012 18:40  [Source: ICIS news]

LONDON (ICIS)--German specialty chemicals major Evonik has filed for arbitration in a dispute related to its disposal of dimethylterephthalate (DMT) producer Oxxynova, officials said on Friday.

The dispute dates back to 2006 when Evonik’s predecessor company, Degussa, sold Oxxynova to Gigaset, which at the time was operating under the name of Arques Industries.

As part of the disposal, Oxxynova undertook to maintain production at its site in Lulsdorf, Germany.

Evonik claims that Oxxynova violated the undertaking when in 2007 it decided to close the site, and it holds Gigaset, as guarantor, liable.

However, Gigaset said the 2006 agreement allowed for the closure of the facility, subject to certain conditions, and that those conditions had been met.

The case was filed with the German Institution of Arbitration in Cologne.

Oxxynova has a 240,000 tonne/year DMT plant at Styerberg near Hanover, Germany, according to information on its website. The company gradually shut down DMT production at Lulsdorf from 2007 to 2010.

By: Stefan Baumgarten
+1 713 525 2653

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