Orbital Engine (NYSE:OE)
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Orbital and Bajaj Sign License Agreement
PERTH, Australia, May 2 /PRNewswire-FirstCall/ -- Orbital Engine Corporation
Limited, Australia and Bajaj Auto Ltd, India have announced a Technical
Cooperation Agreement that will see Orbital's fuel injection technology applied
to a significant volume of Bajaj's autorickshaw three wheeler vehicles. The
agreement for seven years provides exclusivity to Bajaj on its autorickshaw
vehicles for the three years following the commencement of production, expected
to be during 2005.
Bajaj, based in Pune, is one of India's largest producers of two and three
wheelers and dominates the autorickshaw market segment in Asia. The
autorickshaw is the ubiquitous form of transport throughout India and much of
Asia and is currently enjoying strong growth. The Indian market is
increasingly emissions conscious with more stringent emissions standards
commencing in 2005 and further strengthening in 2008/2009. The market is also
fuel economy conscious and Orbital's direct injection technology provides
significantly improved fuel economy and vehicle operating costs, in addition to
desirable engine performance.
This agreement and related arrangements with Bajaj provides Orbital with
revenue streams from its intellectual property and engineering consulting
services for ongoing technical support.
UCAL Fuel Systems Limited, which entered into arrangements with Orbital in
January 2003 to manufacture Orbital's fuel injection systems in India, will be
the supplier to Bajaj. Synerject, Orbital's manufacturing joint venture with
Siemens-VDO Automotive Corporation, will initially supply selected components,
such as the air injector, to UCAL. UCAL's high quality and low cost
manufacturing base will allow cost effective fuel injection system supply to
this very important customer as well as the rapidly growing Indian market.
"We have great expectations for the Bajaj autorickshaw equipped with Orbital's
direct injection technology. Outstanding fuel economy and reduced emissions,
along with improved drivability is exactly what our customers need. We expect
our strong dominance of this sector of the market to continue," commented
Bajaj's Joint Managing Director, Mr. Rajiv Bajaj. "We look forward to working
closely with UCAL and Orbital to achieve our product goals."
"We are very pleased with this agreement with Bajaj. This is an important
further step into Asia for us," said Orbital's Chief Executive Officer, Mr.
Peter Cook. "Bajaj is the right partner for Orbital in the autorickshaw sector
with its dominant market presence and its highly capable engineering
abilities."
Orbital is an international developer of engine and related technologies,
providing research, design and development services for the worlds producers of
powertrains and engine management systems for application in motorcycles,
marine and recreational vehicles, automobiles and trucks. Orbital's principal
operations in Perth, Western Australia, provide a world class facility with
capabilities in design, manufacturing, development and testing of engines and
powertrains unparalleled in the Asia Pacific region. Orbital provides its
customers with leading edge, world class, engineering expertise. Headquartered
in Perth, Western Australia, Orbital stock is traded on the Australian Stock
Exchange (OEC), the New York Stock Exchange (OE) as well as the Berlin (ORE)
and Frankfurt (OREA) Exchanges.
DATASOURCE: Orbital Engine Corporation Limited
CONTACT: Australia - Peter Cook, Chief Executive Officer, Orbital Engine
Corporation Limited, +61-8-9441-2311, or USA - 1-810-245-0621, or
Web site: http://www.orbeng.com/