Masku and Rush Factory pause negotiations over land dispute amid construction delays

The municipality of Masku and the publicly listed event company Rush Factory have decided to pause negotiations regarding a land dispute. The issue revolves around the compliance with the construction obligations for a site acquired by the company. The construction of the facility was initially scheduled for completion in 2022, but delays have occurred.

Municipal manager Miira Raiskila expressed concerns that the company’s assessment of the completion status of the required work differs from the municipality’s view. She proposed obtaining an external evaluation to address the matter. The municipality has threatened Rush Factory with a contract penalty of €170,000. This issue will be revisited once the assessment is completed, with the municipal council set to discuss further actions next Monday.

The dispute has been ongoing for an extended period. Initially, the facility’s completion was expected by the end of 2022, but as the work stalled, extensions were granted until September 2023 and ultimately until the end of March this year. An inspection was carried out in early April, confirming that the construction obligations had been met, but due to unfinished work, the decision to waive the penalty has not yet been made.

Rush Factory is currently the smallest company on the Helsinki Stock Exchange by market value, and the enforcement of the penalty would be a significant setback for the firm. In February, the Helsinki Stock Exchange placed Rush Factory on its watchlist due to considerable uncertainty regarding the company’s financial situation.