Subsequent to the Australian Securities Exchange announcement released 31 January 2022, Orbital Corporation Ltd advises that it has received confirmation from customer Insitu Inc. of the termination of the third engine development program under its long term supply agreement.
Following an economic review of the engine program, Insitu – a wholly owned subsidiary of The Boeing Company – has issued a Termination of Convenience with immediate effect. Under the contracted terms, a Termination of Convenience entitles Orbital UAV to a full reimbursement of all costs incurred on the program to date.
Due to the reimbursement of costs, the termination of the third engine development program will not impact the Company’s full year revenue guidance.
Scheduled volumes of the two existing engine models Orbital UAV has in production for Boeing-Insitu are not impacted and the Company continues to focus on its other engine development programs with Tier 1 customers, including Textron Systems, one of Singapore’s largest defence companies and Skyways.
Source: Press Release
Ooops !
See December 2017 Press Release:
Orbital Corporation Limited is pleased to confirm the establishment of a purpose built facility in the United States of America to support the Company’s unmanned aerial vehicle (“UAV”) operations. The facility is located in Hood River, Oregon, in close proximity to the operational base of key Orbital customer Insitu-Boeing.
During the Vietnam war 1965 the there was 7.4 % of gross domestic product spent on the military, currently the government is talking about increasing the defence spending up to 2% of gross omestic product. This is a disgrace it has been below 2% for well over twenty years. Australia needs a meaningful local defence industry, and should be supporting Australian innovation, companies like Orbital should be supported, especially when the world is facing the possibility of wars in Europe and Asia.