HYOSUNG ADVANCED MATERIALS has been sued by Ascend Performance Materials of the United States for allegedly violating a raw material purchase contract.
According to the Financial Supervisory Service’s Electronic Disclosure System on Nov. 9, HYOSUNG ADVANCED MATERIALS disclosed that it had been sued by Ascend Performance Materials at the International Court of Arbitration of the International Chamber of Commerce (ICC).
HYOSUNG ADVANCED MATERIALS reported that Ascend Performance Materials has claimed a contract violation related to the purchase of raw materials and is seeking compensation of 35 million dollars (approximately 45.7 billion won).
A representative of HYOSUNG ADVANCED MATERIALS stated, “We had signed a long-term supply contract with Ascend Performance Materials for tire cords and airbag yarn N66 chips. Due to deteriorating economic conditions making it difficult to purchase raw materials, Ascend has filed a lawsuit claiming we did not fulfill our contractual obligations. We plan to respond actively through our arbitration representative regarding this matter.”
Meanwhile, HYOSUNG ADVANCED MATERIALS, an affiliate of the Hyosung Group, produces carbon fiber, tire cords, and spandex. It reported a revenue of 2.43 trillion won and an operating profit of 151.6 billion won in the first three quarters of this year.