Orbital (ASX:OEC) - Managing Director & CEO, Todd Alder
Managing Director & CEO, Todd Alder
Source: Business News
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Orbital Corporation (OEC) delivers second engine system to its Singapore-based customer for further evaluation
  • It follows the company’s initial deal with the Singaporean defence company in March 2020 to supply a first prototype multi-fuel engine
  • The second phase of the MOU is ongoing and includes the supply of a small number of additional prototype engines for further evaluation by the customer
  • Phase three is set to follow successful completion and acceptance of the first phases and will allow the customer to authorise a low-rate production run
  • Shares have been trading 4.7 per cent lower at 60.5 cents at 3:58pm AEST

Orbital Corporation (OEC) has delivered a second engine system to its Singapore-based customer for further evaluation.

The latest delivery follows the company’s initial deal with the Singaporean defence company in March 2020.

Under the memorandum of understanding Orbital is designing, developing and producing a multi-fuel unmanned aerial vehicle engine.

The first phase of the deal involved the development, integration and supply of a first prototype to the customer and now, OEC said the development phase has progressed as planned with the second engine system delivered.

The company is reportedly working on a third engine system for delivery later this year.

The second phase of the MOU is ongoing and includes the supply of a small number of additional prototype engines for further evaluation requirements by the customer.

Work is also set to continue with the customer to finalise the requirements and scope of phase three of the program which will progress following successful completion and acceptance of the first phases. On this, the customer is able to authorise a low-rate production run of the multi-fuel engine.

Commenting on today’s announcement, CEO and Managing Director of Orbital Todd Alder said the program is an exciting opportunity for the company to develop and commission an engine production line from its Australian operations.

“We look forward to providing further updates on this program and others over the next 12 months, as we target bringing additional engine models into production.”

Shares were trading 4.7 per cent lower at 60.5 cents at 3:58pm AEST.

OEC by the numbers
More From The Market Herald

" Titomic (ASX:TTT) establishes presence in mining and reseller industries with Brauntell order

Titomic (ASX:TTT) receives a stock order from Brauntell, marking the company's first step into the mining…

" Kleos Space (ASX:KSS) completes $10m debt facility with PURE Asset Management

Kleos Space (ASX:KSS) has completed its $10 million secured debt facility with PURE Asset management to…

" Eden Innovation (ASX:EDE) completes US secured debt restructure

Eden Innovation (ASX:EDE) has completed refinancing of the two existing secured loans in the US.
The Market Herald Video

" Vysarn (ASX:VYS) to buy Project Engineering for $2.6m

Water service provider Vysarn (ASX:VYS) enters an agreement to buy engineering services business, Project Engineering, for…