PESTECH International Bhd’s subsidiary, Pestech Sdn Bhd (PSB), is facing arbitration proceedings initiated by Shandong Power Equipment Co Ltd (SPECO) over a total claim of RM7.68 million.

The dispute stems from purchase agreements related to four key projects, namely the Olak Lempit project in Selangor, the Lachau project in Sarawak, the Sibiyu project in Sarawak, and the Junjung project in Kedah.

SPECO is claiming approximately RMB7.55 million (RM4.67 million) for the Lachau, Sibiyu, and Junjung projects, and US$672,000 (RM3.01 million) for the Olak Lempit project, in addition to general damages, interest, arbitration costs, and other reliefs.

PSB is disputing these claims and intends to seek compensation for additional works, such as rectifications and repairs, which it argues are due from SPECO.

The arbitration commenced on October 30, 2024, and PSB has appointed a legal firm to represent them in the proceedings. –TMR