Andritz Says It Aims for Arbitration on Ovalstrapping Lawsuit

Andritz AG (ANDR), an Austrian maker of equipment for pulp and paper producers, rejected a U.S. supplier’s legal complaint that it stole technology and said it expects the issue to be resolved in arbitration.

Claims in a U.S. lawsuit filed by Ovalstrapping Inc. are “unjustified,” Graz-based Andritz said in a statement today. The Austrian manufacturer said it has replaced Ovalstrapping’s products with “different technology.”

“Andritz believes that the matter will be clarified in arbitration,” the company said.

Ovalstrapping, based in Hoquiam, Washington, filed the suit in U.S. District Court in Tacoma, the engineering company said in a statement late yesterday. The U.S. manufacturer, which provides machinery to bundle bales of pulp, said Andritz “secretly misappropriated Ovalstrapping designs and technology to create its own line of tying equipment” and asked for an injunction and at least $25 million in damages, according to the statement.

The case is Ovalstrapping Incorporated and Oval International v. Andritz AG, U.S. District Court for the Western District of Washington, Case No. 3:11-cv-05820.

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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