Aluminium Bahrain, known as Alba, said on Tuesday it has reached a settlement with Norwegian ship owner Torvald Klaveness in which both parties have waived their financial claims against each other.
The two companies also announced they are to re-establish their business relations by entering into a new long-term freight contract worth about $25 million.
In February 2013, Torvald Klaveness, through its subsidiary Cabu Chartering, commenced arbitration in London against Alba claiming compensation for economic loss incurred as a result of alleged breach of a freight contract from 2008.
Alba in turn started proceedings against Klaveness at Oslo District Court seeking compensation for alleged overbilling in connection with a previous freight agreement negotiated through a broker.
"After some dialogue, the parties have agreed to drop their respective claims. The settlement also provides that the parties waive any rights to later litigation of these claims in any jurisdiction in the world," a statement said.
At the same time, Cabu Chartering and Alba have entered into a new, long-term freight contract for alumina from Australia to Bahrain. The agreement is a multi-year contract and is entered into at market terms, the statement added.
Mahmood Hashim Al Kooheji, chairman of Alba, said: "We are pleased to have reached a settlement with Klaveness and resume normal business relations. Klaveness had been a major freight carrier for Alba in the past and is a well-respected shipping company in the industry. We welcome them back as one of our key freight carriers for alumina."
Lasse Kristoffersen, CEO of Torvald Klaveness, added: “These agreements mark an important normalization of our relations with Alba. We agree to put all disagreements behind us and re-establish the cooperation we have enjoyed through many years. This is duly marked by the signing of a freight contract which is regarded as strategic to both them and us.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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