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3 May 2004
ORBITAL AND BAJAJ
SIGN LICENSE AGREEMENT
PERTH, AUSTRALIA: 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."
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