Arbitral tribunal in Sweden decides in favuor of Lemminkainen Corporation

Nordic Business Report, Oct 2, 2008

NORDIC BUSINESS REPORT-2 October 2008-Arbitral tribunal in Sweden decides in favuor of Lemminkainen Corporation(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish infrastructure contractor Lemminkainen Corporation (OMX Helsinki:LEM1S) said on Wednesday (1 October) that arbitral tribunal in Sweden has decided that IKEA's termination in spring 2006 of the construction contract entered into with Lemcon RUS, the subsidiary of Lemminkainen, was not justified.

The contract concerned the construction of the MEGA shopping centre in St. Petersburg in Russia.

The award confirms Lemminkainen's earlier-stated view that IKEA is liable to compensate Lemminkainen for the expenses and damages incurred as a result of termination in breach of contract, the company said.

The arbitral tribunal will decide on the amount of compensation at a later date. The contract was worth some EUR92m.

Lemminkainen, headquartered in Helsinki, Finland, operates in all sectors of the construction industry. The group has nearly 9,200 employees and reported net sales of EUR2.2bn in 2007.

One British pound (GBP) is worth approximately 1.25 euros (EUR).

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