Tag Archives: MimboloveBUSS

Chenco sues DFD

Written by Paul Adkins

In a press release issued over the weekend, Chenco GmbH has announced that they are seeking Euro 23 million in damages from Do-Fluoride Chemicals, better known as DoFuDo or DFD.

According to the press release, DFD had licences to build 3 plants using Chenco technology, but has gone on to build another 12.   The press release continues with a claim that the DFD-Chalco Joint Venture project is also being based on the illegal use of Chenco’s technology.

In an unusual but not surprising twist, the press release hints at the good relationship that DFD and Chenco had in the past.   It quotes the Managing Director or Chenco, Dr Joszef Juhasz, as saying that “we are proud that DFD has become successful”, and later that “we do not wish to make it more difficult for DFD (to raise capital).

DFD for their part, have announced that they are launching a counter-claim.   Unfortunately, their documents are in Chinese.   Soon as we have a translation, we will present them here, in the interests of balanced reporting. But we can advise that DFD’s response will be that their new plants use technology which is not Chenco, but is a modified version, the original German design being inferior.

This is exactly the same argument that China’s bullet train manufacturers are using against German and Japanese technology companies, and the same that Chalco used against Pechiney/Alcan.   It is also the same that HNFC used to use (I don’t hear them saying it any more) in regards to the licence for BUSS technology.

Chenco may or may not win where companies such as BUSS and many others failed, when it comes to China and technology – I am not making any predictions and we certainly are not taking sides, but I suspect Chenco has one distinct advantage, and that is that Chalco is involved via the Fushun JV.   They will probably be asking questions of DFD, and of themselves.    My understanding is that Chalco approached DFD with the JV idea, but one would think that the Chalco due diligence process included a check box on technology licences.

Interestingly, the press release makes no mention of the Chenco representative in China.