Lork Group Response to Alloy 49 Wire Surface Defect Complaint

2026-04-23

I. Event Overview

Recently, we received feedback from a Singapore-based intermediary client regarding surface defects found in the Alloy 49 precision alloy wire they had purchased. A subsequent technical re-examination confirmed that the issue likely stemmed from elevated impurity levels in the raw materials and fluctuations in the protective atmosphere during the bright annealing process.

The intermediary client subsequently proposed the following resolution: their end customer would return the goods directly to us (without requesting a replacement); the intermediary would issue a refund to their end customer; and they requested that we reverse the original wire transfer and issue a full refund of the payment to the intermediary client.

We have agreed to the aforementioned requests; however, we wish to explicitly clarify that this resolution constitutes a one-time, exceptional settlement and does not establish a precedent or constitute a standard after-sales commitment for our company in the future.

II. Clarification Regarding the "Absence of a Customer Request for Surface Defect Inspection"

Upon verification, it has been confirmed that, in connection with the current purchase order, the intermediary client did not—either in writing or verbally—specify any particular requirements or acceptance criteria regarding "surface defect inspection" in advance. Consequently, our company completed the production and final factory inspection processes in strict accordance with the standard parameters mutually agreed upon by both parties, such as chemical composition and mechanical properties.

From the perspective of both industry practice and contractual obligations, surface quality is a specific inspection criterion that requires explicit, prior agreement between both parties. As the client did not request such testing, our company is under no obligation to assume default responsibility for this particular inspection item.
However—and with a view toward protecting the interests of the end-user—intermediary clients typically do not provide extensive feedback regarding specific product applications or unique requirements. Addressing such matters necessitates in-depth and meticulous technical communication between both parties; yet, given that this was our first collaboration, we did not engage in sufficient dialogue regarding these details. Furthermore, we acknowledge that we failed to provide adequate clarification and committed errors in our supplementary explanations; consequently, we accept our share of the responsibility for the failure of this collaboration.

III. Proposed Resolution (One-time Special Exception)

In light of the refund pressures our intermediary client is currently facing from their end customers, and in order to preserve our cooperative relationship, we have decided to implement the following resolution as a special exception:

No Return Required: We hereby waive all claims to the disputed wire materials, authorizing the client to dispose of them at their own discretion; the materials need not be returned to us.
Full Refund: We will refund the entire amount of the wire transfer payment for this specific order via the original payment method, ensuring that the intermediary client incurs no financial loss.

This resolution applies exclusively to this specific order and incident; it does not constitute a commitment or precedent regarding any future orders.

To prevent any misunderstanding, we hereby solemnly declare:
The "no-return, full-refund" resolution applied in this specific instance shall not be construed as our standard procedure for cases where "the customer did not request product inspection."

For all future orders, should a customer fail to explicitly specify—within the purchase contract—the inspection standards, inspection methods, and acceptance criteria regarding surface defects, we shall not assume any liability for refunds, compensation, or product exchanges related thereto.

We are neither able nor willing to indefinitely underwrite inspection requirements that customers have not proactively requested. We strongly advise customers to clearly define their surface quality inspection requirements at the time of purchase, based on the specific demands of their end applications; we are available to provide inspection services on a fee-for-service basis to accommodate such needs.

IV. Internal Corrective Actions (Addressing only the issues identified in this instance)

To minimize similar disputes in the future, our company has implemented the following internal upgrades:

Raw material impurity control standards have been raised by 30%;
Monitoring of the protective atmosphere during bright annealing has been tightened;
New Inspection Protocol: Effective immediately, for all exported precision alloy wire products, we will—during the initial stages of order fulfillment—verify whether the client requires surface inspection. This serves to fulfill our obligation of prior disclosure. Furthermore, we are currently refining our surface inspection policy to ensure that the associated costs are borne by the company. This measure aims to alleviate cost-related concerns regarding "paid inspections" among first-time clients, thereby encouraging open communication with us. Moving forward, our goal is to proactively provide this service to all clients, even in cases where it has not been explicitly requested.

V. To Our Partners

We understand the cash flow pressures our intermediary clients are facing in light of this incident, and we appreciate their efforts in communicating with their end customers.

However, we wish to make it clear to all our partners: a "failure to specify requirements" does not equate to "unlimited liability" on our part. The special refund granted on this occasion is an exception made out of trust, and should not be regarded as a standard for future operations.

LORK GROUP CO., LTD
April 23, 2026

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