Koch Hightex, the German company whose contract to provide the fabric for the Millennium Dome was terminated in 1997, could get more than £2m in compensation.

The Court of Appeal has ruled that Koch Hightex can pursue a claim for £2.2m compensation from New Millennium Experience Company after overturning an earlier judgment that said NMEC was not obliged to pay compensation.

Koch Hightex agreed a contract to provide the dome’s PVCu outer skin for £6.5m in May 1997, but NMEC terminated its contract four months later, after Greenpeace and other eco-groups protested about PVCu. NMEC then awarded the contract to US manufacturer Birdair, to provide a Teflon-style covering.

Koch Hightex was unavailable for comment. A spokesman for NMEC said: “Notwithstanding the Court of Appeal judgment, it remains the case that NMEC was entitled to terminate its agreement with the claimants. The dispute now reverts to the level of compensation again.”

The spokesman could not say if NMEC compensated Koch Hightex when it terminated its contract.

  • NMEC has confirmed that it is to get an extra £50m in government funding. It said the money was a loan that would be repaid by 2001.