China Specialty Glass AG or CSG said its operating entity Guangzhou Hing Wah Glass Industry Co. (HWG), Ltd. and the Miroiterie du Rhin SAS, an unit of Saint-Gobain Glass France, terminated the existing exclusive distributorship agreement, effective December 31, 2011.
The deal, that was inked on May 27, 2011, covered selected advanced glazing solutions.
The company added that the non-satisfying development of the co-operation between both parties already led in the interim financial statements for the nine months ended September 30, 2011 to an impairment loss of 3.6 million euros on the distribution rights relating to the deal. Also, the determination of this impairment loss took into account potential further payments which CSG´s Management Board had estimated at 2 million euros.