Valmet Oyj said Monday that Kronospan Energy S.A. filed an arbitration request seeking about EUR 130 million from Valmet Technologies Oy over alleged problems at a biomass-fired plant in Luxembourg.
The request remains an arbitration claim, not an award establishing payment. Valmet management said it did not expect material adverse impacts on the company’s operations or financial position, based on the grounds presented so far. Valmet described that view as an early assessment.
Valmet said Kronospan’s preliminary monetary claims include EUR 102 million in damages for an alleged loss in CHP3’s value and EUR 23 million in lost profit at Sanem. The two items total EUR 125 million, about EUR 5 million below the approximate EUR 130 million claim. Valmet’s release did not explain the difference, and the claimed amounts have not been determined.
The case concerns CHP3, a biomass-fired combined heat and power plant installed at Kronospan’s Sanem site. Valmet said a purchase agreement was dated Jan. 18, 2022, and the plant was taken over on July 12, 2024. It also said projects of similar scope typically cost about EUR 100 million, but did not identify that figure as CHP3’s contract price.
Valmet described Kronospan’s allegations as involving performance problems and defects, which Valmet Technologies disputes. In Valmet’s release, the subsidiary said: “CHP3 met the agreed performance requirements when operated with the agreed fuel and otherwise as specified in the Purchase Agreement.”
Valmet said Valmet Technologies plans to pursue its own claims against Kronospan but gave no amount. It also said Kronospan reserved the right to amend or supplement its demands and bring additional claims, so the reported total is preliminary.
