Orbital Corporation Ltd (ASX: OEC) has signed its first engine production contract with its major Singapore customer, totalling $3.5 million.
This initial production and in-service support contract represents the successful transition of the engine development program through to ongoing production and lays the foundations for in-service support for up to 10 years.
The production line will be housed at Orbital UAV’s Perth manufacturing facility, where the company is expanding its unmanned aerial vehicle (UAV) engine capabilities for multiple global customers.
“The long-term partnership we have built with our Singapore customer during this engine development program has now set us on the path to long-term engine production revenue and in-service support opportunities,” said Andrew Mills, Interim CEO of Orbital UAV.
Production is scheduled to commence in February 2024, with delivery of the first engines before the end of the financial year. The remaining engines under the initial order will be delivered in the subsequent financial year.
We are delighted to demonstrate our full product lifecycle capability with another global customer. This program has successfully matured from development through integration to production. It will also have an in-service support component to ensure we continue to meet the requirements of our customer once our product is deployed,” said Mr Mills.
This will be Orbital UAV’s third engine model production line to be operational at its Perth facility.
“With our current programmes transitioning from development to production, and additional development programs in the pipeline, Orbital UAV has built a leadership position within the global tactical UAV propulsion system market,” said Mr Mills. “We continue to leverage that position to capture more of this market.”
The global tactical UAV market continues to grow, with more countries and defence forces looking to acquire or develop the strategically critical intelligence, surveillance and reconnaissance (ISR) capability that these systems provide.
“As demonstrated with our Singapore customer, the Asia Pacific region represents a growth market for Orbital UAV and we continue to explore a number of other opportunities,” said Mr Mills.
Orbital UAV offers multiple commercial off the shelf (COTS) engine options. Combined with the Company’s patented heavy fuel injection technology, Orbital UAV has a range of engine configurations that deliver best in class performance and can meet the propulsion requirements of a broad range of tactical UAVs.
“We continue to build out our product offering and maintain a key differentiator within the industry with our in-theatre proven heavy fuel engine capability. As the tactical UAV market continues to mature, Orbital UAV’s full product lifecycle capability, advanced manufacturing credentials and established customer portfolio will drive further growth,” said Mr Mills.