Court orders Vacon to pay compensation in China

ID: 1069063
recent pressrelease next pressrelease

(Thomson Reuters ONE) -

Vacon Plc, Stock Exchange Release, 29 December 2011 at 3 pm (EET)

Vacon has been sentenced to pay compensation in the court case in China. Vacon
was accused of importing components with the wrong customs tariff

The court ordered Vacon to pay compensation totalling EUR 5.5 million which
consists of unpaid customs duties as well as the penalty. In the opinion of the
court, the correct customs tariff for the components in question was 8 per cent,
and not 10 per cent as demanded by the prosecutor.

The compensation will have a net impact of some EUR 2 million on Vacon's
financial result in 2011, and Vacon made a provision for this on 12 December
2011. Vacon made a provision of EUR 3.2 million already in the 2010 financial
statements in respect of the court case in China. The compensation does not
affect Vacon's guidelines for its financial result in 2011 updated on December

"It has always been and will always be Vacon's explicit policy in its global
operations to comply with both local and international legislation, rules and
regulations. We are pleased that the court ruled in Vacon's favour concerning
the customs tariff on the components, that it should be 8 per cent and not the
10 per cent demanded by the prosecutor. We are also happy that the matter has
been brought to a conclusion, and we do not intend to appeal against the
ruling," says Vacon CEO Vesa Laisi.

The court also imposed prison sentences of 10 and 12 years on two former
employees of Vacon's company in China. These private individuals may appeal
against their sentences.

Vacon first published a statement about the investigation by the Chinese customs
authorities on 19 March 2010. The Chinese prosecuting authority decided to raise
charges on 7 January 2011.

Further information:

* Vesa Laisi, President and CEO, Vacon Plc, tel. +358 40 8371 510, email

* Sebastian Linko, Director, Corporate Communications, Vacon Plc, tel.
+358 40 8371 634, email sebastian.linko(at)

Vacon in brief:

Vacon is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and to provide efficient life-cycle services for
its customers. Our AC drives offer optimum process control and energy efficiency
for electric motors. Vacon inverters are a key component in producing energy
from renewable sources. We have R&D and production units in Finland, the USA,
China and Italy, and sales & service offices in 27 countries. In 2010, Vacon had
revenues of EUR 338 million and globally employed 1,300 people. The shares of
Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange.


NASDAQ OMX Nordic Exchange
Financial Supervision Authority
Main media

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Vacon Oyj via Thomson Reuters ONE


Keywords (optional):

Company information / Profile:

PressRelease by


PressContact / Agency:

published by: hugin
print pressrelease  send to a friend  

Date: 12/29/2011 - 08:01
Language: English
News-ID 1069063
Character count: 0
Firma: Vacon Oyj
Ansprechpartner: Feedback to about Pressrelease-id:
Stadt: Vaasa


Number of hits: 809


Direct Link to this PressRelease:

We would appreciate a link in your News-, Press- or Partner-Site.

Comments on this PressRelease

All members: 9 438
Register today: 0
Register yesterday: 0
Members online: 0
Guests online: 81

Don't have an account yet? You can create one. As registered user you have some advantages like theme manager, comments configuration and post comments with your name.