Orbital expands global customer base with new high-level defence contract in Singapore
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Special Report: The company’s technology continues to be recognised by leading multi-national engineering and defence customers across the world.
For drone technology company Orbital UAV (ASX:OEC), global demand for its advanced engine systems has shown no sign of slowing down lately.
This morning, the company announced that it has signed a Memorandum of Understanding (MoU) with one of the biggest defence companies in Singapore.
It follows another marquee deal earlier this month, when Orbital signed on to be the primary supplier of engines to Boeing subsidiary Insitu.
Phase 1 of the MoU will see Orbital develop, integrate and supply the first prototype multi-fuel engine, for use in unmanned air vehicles (UAVs) deployed by Singapore defence forces.
Development of the prototype is expected to take around 18 months, after which Orbital will directly supply an initial batch of prototype engines. At that point, the customer has the option to authorise the first official production run of the new engines.
Importantly, the agreement is proof that Orbital’s technology is now recognised by major companies in Singapore’s world-leading defence and engineering sectors.
And it also provides an opportunity for Orbital to demonstrate the depth of its intellectual property – in terms of both product-fit and management expertise – to a new global customer.
The company’s patented engine propulsion systems are the result of more than 10 years of product development.
The MoU is a binding deal subject to the completion of Phase 1, and Orbital’s full-year revenue guidance remains unchanged at $25-$35 million.