Vacon has been sentenced to pay compensation in the court case in China. Vacon was accused of importing components with the wrong customs tariff classification.

The court ordered Vacon to pay compensation totalling EUR 5.5 million which consists of unpaid customs duties as well as the penalty. In the opinion of the court, the correct customs tariff for the components in question was 8 per cent, and not 10 per cent as demanded by the prosecutor.

The compensation will have a net impact of some EUR 2 million on Vacon's financial result in 2011, and Vacon made a provision for this on 12 December 2011. Vacon made a provision of EUR 3.2 million already in the 2010 financial statements in respect of the court case in China. The compensation does not affect Vacon's guidelines for its financial result in 2011 updated on December 12.

"It has always been and will always be Vacon's explicit policy in its global operations to comply with both local and international legislation, rules and regulations. We are pleased that the court ruled in Vacon's favour concerning the customs tariff on the components, that it should be 8 per cent and not the 10 per cent demanded by the prosecutor. We are also happy that the matter has been brought to a conclusion, and we do not intend to appeal against the ruling," says Vacon CEO Vesa Laisi.

The court also imposed prison sentences of 10 and 12 years on two former employees of Vacon's company in China. These private individuals may appeal against their sentences.

Vacon first published a statement about the investigation by the Chinese customs authorities on 19 March 2010. The Chinese prosecuting authority decided to raise charges on 7 January 2011.