A2M emphasised multiple delays in receiving EL product from Synlait in their April announcement.
The reason why Synlait hit delays could have been due to quality issues as you suggest or any other reason. Contractually, though it opens them up to this action by A2M.
It seems odd to me for people to label this as risky to A2M. Why on earth should they tolerate failures to meet the DIFOT obligations by a third party supplier when they have facilities to manufacture for themselves?
If it is true that the obligations weren't met then Synlait have dropped the ball.
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- Ann: Notice of cancellation of Synlait's exclusive supply rights
Ann: Notice of cancellation of Synlait's exclusive supply rights, page-32
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