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Orbital Corporation (ASX:OEC) signs with Northrop Grumman

Industrial
ASX:OEC      MCAP $16.79M
23 April 2020 10:10 (AEST)
Orbital (ASX:OEC) - Managing Director & CEO, Todd Alder

Todd Alder/LinkedIn

Orbital Corporation (OEC) has signed a contract with global aerospace, defence, and security company Northrop Gruman.

Northrop Gruman is a Fortune 500 company and had facilities in all U.S. states and more than 25 countries, employing 90,000 people.

Orbital will design and develop a hybrid propulsion system for Vertical Take-Off and Landing (VTOL) in Unmanned Aerial Vehicles (UAV).

“This new contract of work represents another opportunity for Orbital UAV to expand its customer base of global defence prime contractors and further develop our range of products to meet the evolving needs of the tactical UAV market,” said CEO and Managing Director Todd Alder.

Sourced: Orbital Corporation

The brief includes creating a propulsion system that will combine the company’s flight-proven heavy-fuel engine and an electric motor for leading VTOL performance and reliability.

The work will be completed at Orbital’s design facility in Perth, Western Australia and will push the boundaries of the industry, as Orbital Vice-President for Global Growth Keith Hirschman explained.

“The integration of our heavy fuel engine technology with a hybrid propulsion system represents a significant technological step forward for the tactical UAV industry. A hybrid propulsion system will address the growing demand for greater payload power,” he said.

Orbital expects to deliver the two prototypes for flight testing in 2021. Success in the design and development stage could lead to additional commercial production opportunities.

The contracts will not impact Orbital’s guidance for the 2020 financial year.

Orbital shares are worth 63.5 cents each at 10:10 am AEST.

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