Orbital and Bajaj Sign License Agreement
May 02 2004 - 11:39PM
PR Newswire (US)
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/
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