DK Lock Terminates Supply Contract with Proserv... "Limited Business Impact"
DK-LOK terminated the tube fitting and valve supply contract with the UK-based Proserv (hereinafter, Proserv), which was signed on October 20, 2020.
On the 31st, DK-LOK announced that the supply contract for DK-LOK Tube Fittings and Valves Products worth 11.7 billion KRW was terminated following the termination notice from the contracting party. This amount corresponds to 15.8% of the 2019 sales revenue.
This contract was a four-year unit price supply agreement, and during the COVID-19 pandemic, Proserv had been withholding orders due to decreased forecast demand, disrupted supply chains, and increased lead times.
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A DK-LOK official stated, “Although the original contract expiration date was October 19, 2024, Proserv requested contract termination due to non-fulfillment of the contract,” adding, “From the company’s perspective, the impact on business is limited as we have newly secured customers in the Middle East region, and large clients such as UAE (ADCO/ADNOC) and Qatar National Gas Company (QE/QP) have been added.”
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