8.1.2025

Finnish manufacturing company Arbitration proceedings under the SCC rules

Related services

We successfully represented a Finnish manufacturing company in arbitration proceedings under the SCC rules against a global construction company. The dispute was governed by Finnish law and the seat of arbitration was Stockholm, Sweden.

The dispute mainly concerned the termination of an erection contract and the right to compensation for delays of the project and for cost increases due to Russia’s invasion of Ukraine. The main questions in dispute were the lawfulness of the termination of the erection contract as well as the consequences of the termination such as the right to costs to complete the project after termination, the right to liquidated damages for delay of the project and adjustment of contract price due to cost increases.

The total value of the dispute exceeded EUR 15 million.

Our team

Latest references

Oomi – Transfer of KSS Energia’s electricity sales contracts for consumer and business customers to Oomi

We are advising Oomi Oy in a business transaction whereby KSS Energia Oy’s consumer and business customers in the retail sale of electricity will be transferred to Oomi. The transfer is scheduled to take place in March 2025. The arrangement requires approval from the Finnish Competition and Consumer Authority. Oomi Oy is one of the largest energy service companies and electricity sellers in Finland. The arrangement is a result of the recent development of the electricity market and Oomi’s strategy, which aims to offer customers a seamless and improved digital customer experience.

Fortum – Sale of recycling and waste business

We are acting as the lead counsel to Fortum in a cross-border transaction in which Fortum is selling its recycling and waste business. The business is sold to thematic impact investing firm Summa Equity through its portfolio company NG Group. The debt-free purchase price is approximately EUR 800 million. The transaction is subject to authority approval and customary closing conditions. Fortum’s recycling and waste business to be sold comprises municipal and industrial waste management and end-to-end plastics, metals, ash, slag and hazardous waste treatment and recycling services. These businesses are located in Finland, Sweden, Denmark and Norway and currently employ approximately 900 employees.

WasaGroup – Planning of production and technology campus in Mustasaari

We advised WasaGroup Ltd in a green transition project where WasaGroup will plan Hitachi Energy’s new production and technology campus in Mustasaari. WasaGroup will be responsible for planning, permitting, managing and conducting the entire project as well as for the tender processes. We advised WasaGroup in drafting and commenting the project management and financing agreements for the project. The Mustasaari campus will be approximately 30,000 square meters in size. The investment by Hitachi Energy will double the capacity for transformer production in Finland, and the product range will expand to include even larger transformers. The objective of the investment is to meet the demand for transformers and other modern technology that is increasing in Finland and internationally due to the green energy transition. The first phase of the project involved an agreement for a development project to prepare the building permit and reach sufficient planning readiness for the implementation of the project. The aim is to have the production and technology campus in use by 2027.

Finnish building company – Settlement of large-scale construction dispute

We successfully represented a major Finnish construction company in a dispute and settlement negotiations concerning a large construction project. The dispute mainly concerned liabilities for additional and change works as well as project delays, and the value of the claims of the parties was approximately EUR 50 million. If the case had not been settled, it would have been one of the largest construction disputes ever tried in the Finnish courts. The projected number of hearing days was unprecedentedly more than 300 days. To find an amicable solution to the extensive dispute, the parties engaged in settlement negotiations and court mediation. Eventually, the parties reached an amicable settlement to the full satisfaction of our client and thus the parties avoided the costs and risks of an extensive trial.

Search from the site.