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Metallurgical products
General Terms of Sale
Current reports A A A
Conclusion of a significant contract with Ferrum S.A.
Report no.: 48/2011
Date of issue: 2011-10-05
Legal basis: Art. 56 cl. 1 item 2 of the Public Offering Act - current and periodic information
SUBJECT:
Conclusion of a significant contract with Ferrum S.A.
CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company) informs that on October 4, 2011 the Company concluded two contracts with Ferrum S.A. seated in Katowice (Ferrum) for the purchase by Izostal S.A. of black steel pipes and coated steel pipes, and two contracts for the supply by the Company of steel pipes with external coating and internal painting.
Total value of the contracts concluded on October 4, 2011 by Izostal S.A. and Ferrum S.A. is around EUR 24.7 million, which converted into PLN according to the average exchange rate of the National Bank of Poland on the day of contracts' conclusion amounts to around PLN 108.7 million. This amount comprises around EUR 13.6 million of sales by Izostal (which converted into PLN according to the average exchange rate of the National Bank of Poland on the day of contracts' conclusion amounts to around PLN 59.8 million).
The contract of the greatest value is the contract for the supply by Izostal S.A. to Ferrum S.A. (Buyer) of steel pipes with external coating and internal painting, the net value of which is around EUR 7.3 million, which converted into PLN according to the average exchange rate of the National Bank of Poland on the day of contracts' conclusion amounts to around PLN 32.1 (Contract).
The Contract will be implemented from October 2011 to February 2012.
For non-performance or undue performance of the contractual obligations, the Parties have agreed the following contractual damages, wherein all damages and/or respective reductions in % are calculated against the net price:
a) the Supplier shall pay to the Buyer contractual damages for failure to keep the implementation terms in the amount of 0.1% of the net Contract's value for each full day of delay,
b) the Supplier shall pay to the Buyer contractual damages for withdrawal from the Contract for reasons attributable to the Supplier in the amount of 25% of the Contract's value,
c) the Supplier shall pay to the Buyer contractual damages for delay in rectification of defects attributable to the Supplier in the amount of 0.06% of the Contract's value for each day of delay calculated from the day indicated to be the defect repair date,
d) the Buyer shall pay to the Supplier contractual damages for withdrawal from the Contract for reasons attributable to the Buyer in the amount of 25% of the Contract's value.
Irrespective of any contractual damages Parties may claim complementary compensation up to the loss amount on general principles. Aforesaid provisions shall not be applicable for Force Majeure events.
Parties have agreed that settlements related to the contracts of October 4, 2011 shall be made in EUR.
Any aforesaid contract is a significant contract and exceeds 10% of Company's equity.
Total value of transactions between the Company and Ferrum, calculated since July 5, 2011 (current report no. 41/2011) has amounted to around PLN 118.8 million.
Specific legal basis: § 5 cl. 1 item 3 of the regulation of the Minister of Finance of February 19, 2009 on current and periodic information provided by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).
SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-10-05
Management Board Vice President, Commercial Director Jacek Podwiński 2011-10-05
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer: IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange: Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678