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The Weir Group PLC (“Weir”) announces the settlement of a long-running legal dispute against two Chinese manufacturing companies - Shijiazhuang Pump Industry Group Co., Ltd. (“SPGC”) and Shijiazhuang Kingda Pump Industry Group Co., Ltd. (“Kingda”).  The settlement has immediate effect.

Additionally, Weir has received a formal Arbitral Award on the matter against the two manufacturers which issued from the China International Economic and Trade Arbitration Commission (“CIETAC”), a Chinese arbitration tribunal of international standing, on 29 March 2010. 

At one time, SPGC was a manufacturing licensee of Weir for Warman® brand centrifugal slurry pumps and parts, but this relationship ended in 2004.  The settlement and CIETAC Arbitral Award commits SPGC and Kingda to ensure that any equivalent or comparable products which they may manufacture today are not marketed, sold, used or distributed outside of China.  Furthermore SPGC and Kingda are not allowed to permit or encourage third parties to use or distribute those products outside of China.

Further, the announcements stipulate that SPGC and Kingda shall immediately terminate any purchase and sales agreements, withdraw bids for any projects, and cease the supply of Weir Licensed Products with parties outside of China.

Alan Mitchelson, Legal and Commercial Director of The Weir Group commented: "The Weir Group is pleased that the settlement agreement and arbitral award will be able to give clarity to customers about the legality of purchasing pumps and pump parts which are manufactured in China by SPGC and Kingda."

A more detailed information addendum concerning this announcement as well as copies of the CIETAC Arbitral Award, are available from Dr. Malcolm Engel, Intellectual Property Manager for The Weir Group, PLC and the Weir Minerals division.