Australian drone manufacturer Orbital UAV announced the signing of a production contract with a major Singapore customer, amounting to $3.5 million.
This contract marks the transition from engine development to long-term production, securing a continuous revenue stream for the company over the next decade, the company said in an ASX announcement.
The production line will be based at Orbital UAV’s manufacturing facility in Perth, which is expanding its capabilities to provide engines for unmanned aerial vehicles (UAVs) to customers worldwide.
Andrew Mills, the Interim CEO of Orbital UAV, expressed his satisfaction with the contract, saying, “The long-term partnership we have built with our Singapore customer during this engine development program has now set us on the path to long-term engine production revenue and in-service support opportunities.”
Production is scheduled to commence in February 2024, with the first engines set for delivery before the end of the financial year.
The remaining engines from the initial order will be delivered in the following financial year.
This marks the third engine model production line to operate at Orbital UAV’s Perth facility, further enhancing the company’s position in the global tactical UAV propulsion system market.
The company reported that the global demand for tactical UAVs is steadily rising, as more nations and defence forces seek advanced intelligence, surveillance, and reconnaissance (ISR) capabilities.
Mills underscored the growth potential, especially in the Asia-Pacific region, by expressing that the Asia-Pacific area offers a promising market for Orbital UAV.
He also mentioned the company’s ongoing exploration of various other prospects.
To date, Orbital UAV offers various commercial off-the-shelf (COTS) engine options, and its patented heavy fuel injection technology ensures best-in-class performance.
“As the tactical UAV market continues to mature, Orbital UAV’s full product lifecycle capability, advanced manufacturing credentials and established customer portfolio will drive further growth,” Mills concluded.
