25.10.2018

Deutz wins injunction against supplier

The Saarbrücken Regional Court in Germany has ruled that Neue Halberg Guss must resume supplying cast components to Deutz as contractually agreed with immediate effect.

The decision, issued in the form of a mandatory injunction will ensure that the supply of crankcases and cylinder heads, at least until the end of the year, when the current injunction expires.

It seems that the casting supplier has threatened to suspend deliveries unless Deutz agreed a significant price increase, one off payments amounting to millions of euros and firm purchase commitments. Even though a valid contract was in force between the two companies - which are long term partners -and there was no legal basis for making mid contract changes.

A statement from Deutz said: “We will not hesitate to use all legal means at its disposal to ensure we are able to maintain a reliable supply to our customers.”

Deutz chairman Frank Hiller added: "The madness has come to an end. NHG will finally have to meet its commitments. This is a breakthrough for Deutz and our customers. We now have planning certainty – that's the most important thing."

"The court's decision confirms our view that contracts must be honoured, and in a globalised world, suppliers must assume a special responsibility."