Join our daily newsletter At The Bell to receive exclusive market insights
- Unmanned Aerial Vehicle (UAV) parts manufacturer Orbital Corporation (OEC) has inked an initial deal with a major Singaporean defence company
- Orbital has signed a binding Memorandum of Understanding (MoU) to design, develop and produce multi-fuel engines for the company
- An initial contract has been signed for Phase 1 of development which is expected to take up to 18 months to complete
- Subject to the success of the initial phase, the MoU provides for subsequent contracts for a further two phases
- According to Orbital, the contract for Phase 1 will not alter its revenue guidance for the current financial year
- Shares in Orbital are trading 5.95 per cent higher for 44.5 cents apiece
Unmanned Aerial Vehicle (UAV) parts manufacturer Orbital Corporation (OEC) has inked a deal with a new international customer.
Orbital has signed a binding Memorandum of Understanding (MoU) to design, develop and produce multi-fuel engines for a major Singaporean defence company.
An initial contract has been signed with the company for Phase 1 of development which is expected to take up to 18 months to complete. This will entail the development, integration and supply of a first prototype to the customer.
Subject to the success of the initial prototype and acceptance from the customer, the MoU provides for subsequent contracts for a further two phases.
Phase 2 of development would see Orbital supply additional engines for the customer to conduct more evaluations. The third and final phase would include a low rate production run of the multi-fuel engine.
CEO and Managing Director Todd Adler welcomed the contract as an opportunity to demonstrate the company’s techniques with a new international customer.
In addition, the company clarified that the contract for Phase 1 will not alter its revenue guidance for the current financial year.
Shares in Orbital are trading 5.95 per cent higher for 44.5 cents apiece at 12:20pm AEDT.
