Orbital Announces Expanded Siemens Relationship
17 November 1998
Orbital Announces Expanded Siemens Relationship
PERTH, Australia, Nov. 16 -- Orbital Engine Corporation
Limited is pleased to announce an expansion of
Synerject, the manufacturing joint venture equally owned by Siemens Automotive
Corporation and Orbital. This expansion relates to activities previously
undertaken by METEOR, a joint venture between Orbital and Brunswick
Corporation. Following commercial negotiations between Siemens and Brunswick,
Synerject will now take over these non-automotive activities from METEOR.
Brunswick is now able to relinquish its interest in the METEOR partnership
as Mercury Marine, a division of Brunswick, has recently entered into a long
term supply agreement with Orbital, therefore guaranteeing the supply of high
quality, low cost fuel systems. This removes any potential barriers to
supplying fuel systems to other major customers in this arena.
This expansion continues the growth of the strategic alliance between
Orbital and Siemens. The relationship commenced in 1997 with the formation of
Synerject, a company formed to manufacture injectors. In 1998 the
relationship expanded to supply complete integrated systems incorporating OCP
technology to automotive customers. Today's expansion enables Synerject to
market these systems to non-automotive customers on a worldwide basis
utilising Siemens' global organisation.
A press release from Synerject regarding this relationship is attached to
this announcement.
Synerject To Extend Unique Direct Injection Technology
To Non Automobile Markets
NEWPORT NEWS, Virginia -- Synerject, a joint venture company formed in
1997 by Siemens Automotive Corporation and Orbital Engine Corporation,
announced today its expansion of operations to support non-automobile
applications with air assisted direct injection (DI) and Electronic Fuel
Injected (EFI) systems.
Synerject combines the unique air assisted direct fuel injection
technology of Orbital with Siemens Automotive's extensive fuel systems, engine
management, EFI technology and high-volume manufacturing capabilities.
Co-located beside the Siemens Automotive Fuel Components Division in Newport
News, Va., Synerject has dedicated the applications engineering and
manufacturing resources required to meet the high-volume demands of the
motorcycle, scooter, marine outboard engine, personal watercraft and
snowmobile markets.
"Our unique direct injection systems provide proven solutions for the
growing global market for cleaner two-stroke engines," said Synerject's newly
appointed head of non-automobile operations, Terry Stinson. "Manufacturing
for non-automobile markets, such as the motorcycles and scooters, represents a
potential market of 18 million units annually. Synerject is well positioned
to sell low cost DI and EFI systems to meet the customers' needs in this
sector."
Synerject's expertise in two-stroke DI system development stems from
Orbital's work with nine major customers in the growing global market for
clean, efficient engines for motorcycles, marine engines, personal watercraft
and snowmobiles.
The Synerject DI system for non-automobile engine applications has
demonstrated a pre-catalyst emissions reduction of approximately 80 percent,
while improving fuel economy by nearly 40 percent. These results are
increasingly important to manufacturers of automobile and non-automobile
engines as government emissions and fuel economy regulations in Europe, Asia
and North America become more stringent.
Synerject is in a position to leverage Siemens Automotive's electronics
expertise to develop and introduce added functionality for non-automobile
engine applications. Such functions would include, for example, the
integration of anti-theft technology and advanced diagnostics through the
existing Electronic Control Unit (ECU) that is required for controlling the
Synerject DI fuel system.
Synerject currently manufactures fuel rail assemblies for Orbital's unique
air assisted direct fuel injection technology fitted to the Mercury Marine
Optimax engines. Additionally, Synerject supplies prototype direct fuel
injection assemblies for four-stroke programs at Daimler Benz and other
automobile manufacturers. The expanded Synerject arrangement supersedes the
systems business previously undertaken by Meteor, a joint venture between
Orbital and Brunswick Corporation.
Siemens Automotive is a tier-one supplier of automotive and electrical-
electronic systems and components with applications covering powertrain
systems, safety and chassis systems, body electronics, electric motor drives,
driver information systems and diesel systems. Worldwide sales in fiscal year
1998 increased 25 percent (*US $3.2 billion) over 1997 FY sales
(*$2.6 billion). This year, Siemens Automotive exceeded $1 billion in North
American sales for the first time in the history of the company. The parent
organization, Siemens AG, the world's second leading manufacturer of
electronics capital goods, generated sales of $64 billion in 1997 and
presently employs 386,000 people worldwide.
Orbital is a leading international developer of engine technologies using
direct in-cylinder fuel injection and stratified combustion systems for
enhanced fuel economy and lower emissions. The company serves the worldwide
automobile, marine recreational and motorcycle markets. Headquartered in
Perth, Australia, Orbital employs 350 people in four facilities throughout the
world. For the 1997-98 fiscal year, the company had revenues of
US $37.1 million and net income of $2.2 million. Orbital stock is traded on
the Australian (OEC), New York (OE), Berlin (ORE) and Frankfurt (OREA) Stock
Exchanges.
* Conversion rate from DM to US$ = 1.68