It marks a key development across OEC’s suite of Tier One global defence customers.

Advanced engine manufacturer Orbital Corp (ASX:OEC) has delivered the first multi-fuel engine system to its Singapore-based defence customer.

The shipment marks a “significant milestone” in what is a longer-term supply arrangement, and demonstrates OEC’s ability to execute an omnichannel supplier strategy for multiple global defence clients, Orbital CEO Todd Alder said.

The delivery of OEC’s multi-fuel engine prototype marks Phase 1 of a three-phase development plan with its Singapore customer.

“The engine represents the latest innovations in UAV propulsion capabilities providing best in class performance to our customer,” Alder said.

Phase 2 is now underway, which will see Orbital build and develop a number of additional engine prototypes that will be shipped for further evaluation.

“We are now working, under contract, on Phase 2 and confirming requirements and terms and conditions for Phase 3 of the program,” Alder said.

Upon completion of Phase 2, the deal will culminate in Phase 3 final approval for a production run of OEC’s multi-fuel engine systems.


Global strategy

While OEC’s operational momentum in Singapore is an important step forward in the Asia-Pacific region, it also adds to the company’s expanding client base of Tier 1 global defence companies.

Along with its multi-year contract with Boeing defence subsidiary Insitu Inc, the company also signed a deal to develop a hybrid propulsion system with global aerospace giant Northrop Grumman.

“I am pleased with the progress we have made with our customer diversification strategy over the past 18 months and our ability to deliver against the development program milestones we have set out,” Alder said.

Orbital UAV CEO, Todd Alder, with the Minister for Defence, Melissa Price, at Land Force 2021. Pic: supplied

On the domestic front Orbital, which is currently at Land Force 2021, representing the Western Australian defence industry with Defence West, is also in prime position to benefit from the federal government’s commitment to invest $270bn in its defence capability over the next 10 years.

“Orbital UAV continues to increase its status within the global UAV defence industry, enhancing our reputation as a world leader in the design, development and production of engines for tactical UAVs,” Alder said.

This article was developed in collaboration with Orbital Corp, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.