Zona Nordic sues Aqua Bio Technology over settlement agreement

Speciality chemicals company Zona Nordic (ZN) has sued Norway-based cosmetic ingredients maker Aqua Bio Technology (ABT) in the Helsingborg District Court.

In its complaint, ZN stated that ABT failed to fulfil its obligations under a settlement agreement signed in 2009. This is said to have arisen from a second part of the agreement that required ABT to acquire ZN’s product line at the end of the agreement term.

ZN placed an order at the end of the term for more than eight times the accumulated volume during the eight-year term of the agreement. However, ABT decided to not buy ZN’s product line as it did not find it to be commercially lucrative.

According to the lawsuit, ZN is claiming for damages of around NOK12.18m ($1.5m) with the addition of interest.

ABT has rejected the claims from ZN stating that there is no basis for them.

The 2009 settlement agreement also stated that ABT should pay NOK3m ($365,385) to ZN and supply ingredients for one of its product lines until 2017. ABT states that this has been fulfilled.

ABT offers a range of cosmetic ingredients developed for use in skincare products worldwide. It also provides new technologies and skincare products through in-licensing agreements with third parties.