However, with effect from November 2004 FLSmidth eventually terminated the licensing agreement which allowed L&T to use FLSmidth know-how and technology under the terms of the licensing agreement. According to the agreement L&T has accepted not to utilise FLSmidth's know-how and proprietary rights and to refrain from competition with FLSmidth for a period of five years.
On Monday 6 June L&T issued a press release stating that the company has obtained an order for a cement grinding plant on turnkey basis to Oman Cement Company's plant in Rusayl, Oman. L&T is thereby in breach of its contractual obligations towards FLSmidth in tendering for the project in Oman despite L&T's repeated written confirmation towards FLSmidth that the company will honour its surviving obligations under the licensing agreement. FLSmidth further has reason to believe that L&T's quotation for the said project is based on FLSmidth's know how and technology which L&T obtained access to only for the purpose of the licensing agreement, and that L&T is therefore now directly and actively infringing FLSmidth's know how and proprietary rights.
FLSmidth has consequently informed L&T that FLSmidth will take all actions which it deems necessary and fit to protect its rights and to prevent L&T from continuous and deliberate breach of its contractual obligations as well as continuing and deliberate infringement of FLSmidth's know-how and proprietary rights.
Please address any questions regarding this announcement to CEO Anders Bech, FLSmidth Limited India, at (+91) 44 52 191234.
FLSmidth A/S