LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 1.10.2008, 9:00
THE ARBITRAL TRIBUNAL DECIDED THAT IKEA HAD NO RIGHT TO TERMINATE THE ST.
PETERSBURG MEGA SHOPPING CENTRE CONTRACT
The arbitral tribunal held in its separate award rendered in Stockholm on 29
September 2008 that IKEA´s termination in spring 2006 of the construction
contract entered into with Lemcon RUS, the subsidiary of Lemminkäinen was not
justified. The award confirms Lemminkäinen's earlier-stated view that IKEA is
liable to compensate Lemminkäinen for the expenses and damages incurred as a
result of termination in breach of contract. The arbitral tribunal will decide
on the amount of compensation at a later date.
The contract concerned the construction of the MEGA shopping centre in St.
Petersburg. The contract was worth approx. EUR 92 million. Lemminkäinen reported
the signing of the contract on 9 August 2005 and the termination of the contract
on March 2006. Arbitration proceedings according to the rules of the Stockholm
Chamber of Commerce's Arbitration Institute have been on-going since 2006.
Managing Director Juhani Sormaala, Lemminkäinen Corporation, tel. +358 2071
Lemminkäinen Group operates in all areas of the construction sector. The Group's
business sectors are building construction, infrastructure construction,
technical building services, and building products. Net sales in 2007 were
approx. EUR 2.2 billion, of which international operations accounted for over a
quarter. The Group employs about 9,200 people. Lemminkäinen Corporation's share
is quoted on OMX Nordic Exchange Helsinki.