Photo courtesy of Yonhap News

 

 

[Alpha Biz= Ellie Kim] Dawonsys (068240) announced on May 7 that its contract with the Gyeonggi Provincial Government Northern Office for the manufacturing and supply of electric railcars for the Dobongsan–Okjeong metropolitan railway project has been terminated.

The contract, valued at approximately KRW 49.88 billion, represents 13.94% of the company’s latest annual revenue based on its consolidated financial statements as of the end of 2023.

The company stated that the termination was notified by the Public Procurement Service following a request from the counterparty due to delays in delivery. The agency also decided to forfeit the contract bond to the national treasury.

Dawonsys added that it disputes the grounds for the termination and plans to participate in a hearing process with the Public Procurement Service to present its case.

 

 

 

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