Zelan Berhad (“ZB”) wishes to announce that its wholly owned subsidiary, Zelan Holdings (M) Sdn Bhd (“ZHSB”) has on 5 October 2018 received from the Dongfang Electric Corporation (“DEC”) a Notice of Arbitration dated 4 October 2018 issued against ZHSB in respect of disputes and differences arising from the Settlement Agreement dated 30 June 2014, between DEC and ZHSB in relation to the Supplies, the Supervision for Erection, Testing and Commissioning Services, the Power Plant Commissioning, and the Boiler, Turbine, Generator Performance Tests for the 2 x (300-400MW) Coal-Fired Steam Power Plant located at Rembang, Central Java, Indonesia.  

DEC is claiming against ZHSB, inter alia, for the following:  

(a) the balance outstanding of USD1,146,000.00;

(b) interest;

(c) cost; and

(d) any other reliefs deem fit.

ZHSB shall take all necessary steps to defend or safeguard ZHSB’s interests in the arbitration proceedings, including but not limited to seeking legal advice on the merits of the claims by DEC.     

This Announcement is dated 5 October 2018.