A bitter row between leading Russian plastics processor Polyplastic Group and one of its automotive industry customers over alleged unpaid debts has escalated in the courts.
Earlier this year, Polyplastic’s compounding arm R&P Polyplastic initiated insolvency proceedings in court against Russian car parts producer Automotive Components Ltd. (Autocomponent) of Nizhny Novgorod to recover payments owed for the supply of compound materials.
The Moscow-based technical compounder claimed the debt, now exceeding €1.41m, in payment for material it supplied as long ago as 2017, remained unpaid despite Autocomponent’s agreement that year to settle the matter.
In the latest twist to this long-running dispute, the customer’s parent group Zavod Autocomponent Ltd. retaliated by announcing it was filing an insolvency lawsuit against Trade House Polyplastic, the supplier group’s trading arm.
Trade House Polyplastic’s press office responded to this with a statement condemning the move and declaring Zavod Autocomponent’s announcement was “false and contains defamatory information”.
Polyplastic said that Trade House Polyplastic “had no outstanding commitments to Zavod Autocomponent Ltd.”. So, the supplier has “brought a lawsuit before the Arbitration Court of Nizhny Novgorod to defend its business reputation”.
Earlier, Polyplastic had justified its involvement of Zavod Autocomponent in proceedings as it acted as guarantor for its auto parts subsidiary Autocomponent.
Hearing of the case was scheduled to take place in the court of first instance there on Monday, 26 August, Polyplastic stated.
Autocomponent, with plants in Togliatti and Nizhny Novgorod, manufactures more than 2,700 different interior and exterior vehicle parts including plastics based fuel tanks, bumpers, mirrors, door panels and other interior trim.
The group serves a number of Russian car and truck manufacturers including AvtoVAZ, GAZ and Sollers as well as global automotive giants like Volkswagen, Renault-Nissan, Datsun, Skoda and Faurecia.