A Chinese chemical company has been ordered to pay more than US$65 million in compensation to five overseas insurers over an incident in 2000, when a leak of corrosive chemicals destroyed a Malaysian cargo plane.

 

The Dalian Company, affiliated with China National Chemical Construction Corporation (CNCCC), was brought before the Beijing High Court in 2002 by Malaysian Airlines and the insurers.

 

The plaintiffs contended that Dalian Company had mislabeled a consignment of chemicals that were aboard the plane.

 

On Wednesday, the court ordered the CNCCC Dalian Company to pay more than US$65 million to the insurance companies. However, it rejected the airline's request for compensation of more than US$10,000.

 

A defense lawyer surnamed Xu said she would consult with the company over the possibility of an appeal.

 

In February 2000, the CNCCC Dalian Company contracted with Malaysian Airlines to transport 80 barrels of chemicals from Beijing to Kuala Lumpur. It declared the shipment as the nontoxic solid hydroxyquinoline, when in fact it was a corrosive substance, oxalyl chloride.

 

(Xinhua News Agency December 6, 2007)