Orbital Corporation (ASX: UAV) has established a new collaborative agreement with Dynamatic Technology to integrate an Orbital 150cc Heavy Fuel Engine (HFE) into a Dynamatic Technology designed UAV for potential supply to defence force users.
Dynamatic Technology is an Indian based manufacturer of highly engineered, mission critical products for the Aerospace, Automotive and Hydraulic industries. The collaborative agreement has been outlined in a Memorandum of Understanding (MoU) which has led to the formalisation of an initial order for test engines by November 2024.
Market leading capability
Orbital UAV is delighted to announce this new partnership with Dynamatic Technology, an innovative company focused on market leading development that aligns with the Company’s ambitions. The MoU represents an opportunity to integrate Orbital UAV’s superior heavy fuel engine capability with Dynamatic Technology’s UAV platform and provides a critical first step toward a long-term partnership in a developing region of the world.
World leader in heavy fuel
Orbital UAV’s established superiority in heavy fuel engine development and proven track record of supplying market leading technology for military is a differentiator from other providers in the space. The MoU creates an opportunity for the integrating of Orbital UAV’s 150cc HFE into the Dynamatic Technology UAV programme at least one weeks written notice, with or without cause and without any liability to the other Party.
- There are no current performance-based terms under the MoU.
- Termination of the MOU shall not affect the validity of any Purchase
Order(s) and/or Contract(s) already implemented, or the work commenced thereunder, before the termination of the MOU.
Economic Impacts
- The MoU does not constitute a production order in itself and does not have an impact on Orbital UAV’s revenues.
- The initial order for prototype engines received in August 2024 will constitute $0.2m in revenues upon successful delivery of units in November 2024.
