Agri-Pulse reports:
Steel pipe manufacturer Welspun Tubular LLC is suing carbon pipeline company Summit Carbon Solutions for $15 million for allegedly breaching a purchase agreement for $182.5 million worth of pipe.
The company, a subsidiary of an Indian manufacturing firm, last week filed a lawsuit in Delaware State Court alleging Summit canceled its contract for about 4.1 million feet of pipe after experiencing project delays in North Dakota, South Dakota and Iowa.
Production of pipe for the project was supposed to begin last May under a purchase agreement, but Summit also was given flexibility to delay it for up to six months, “which it did while it tried to obtain project permits in North Dakota, South Dakota, and Iowa, the states in which construction was set to begin,” according to the lawsuit.
When that six-month window expired, Summit requested “an indefinite suspension period,” which was denied by Welspun Tubular.
Then Summit, the lawsuit alleges, “refused to purchase the pipe as required by the purchase agreement.” Later, it says, the company canceled it altogether.
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