Lion Industries Corporation Berhad (LICB) announced that its wholly-owned subsidiary, Secomex Manufacturing (M) Sdn Bhd (Secomex), has been served with arbitration proceedings initiated by Linde Malaysia Sdn Bhd (Linde) over an alleged breach of a gas supply agreement.
In a Bursa Malaysia filing, LICB said Secomex received notification from the Asian International Arbitration Centre (AIAC) on June 19, 2026, regarding the commencement of arbitration proceedings by Linde on the same date.
The dispute relates to the Gas Supply Agreement for Argon entered into between Linde and Secomex on July 26, 2022.
Linde has alleged that Secomex breached the agreement and is seeking payment amounting to RM348,014, representing claims for the period from October 13, 2022, to January 13, 2023.
Apart from the payment claim, Linde is also seeking interest, costs, and any further relief deemed appropriate by the arbitration proceedings.
LICB said Secomex is currently seeking legal advice on the merits of Linde’s claim and the available courses of action.
“Based on the information currently available, the financial and operational impact on the Company cannot be determined with reasonable certainty at this juncture,” LICB said.
The company added that any potential losses, if any, cannot be quantified at this stage.
Secomex intends to defend the claim and will provide further updates should there be any material developments arising from the arbitration proceedings.
