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22 February 2006
ORBITAL'S JOINT VENTURE SYNERJECT
PURCHASES BRP's ELECTRONIC COMPONENTS FACILITY
Perth, Australia: Orbital Corporation
Limited today announced that Synerject, its 50:50 joint venture
with Siemens VDO Automotive Corporation, has completed due diligence
and will acquire BRP US Inc.'s electronic components facility in
Delavan, Wisconsin, USA with effect from 1st March 2006.
The investment by Synerject consists of working
capital, principally receivables and inventory. Orbital expects
the Delavan business will be profitable from the date of acquisition,
with margins improving substantially over the medium term. The newly
acquired business will increase Synerject's revenue by more than
50%, compared to annual revenue of US$42m reported at 30 June 2005,
with further identified growth prospects for the immediate future.
Orbital's Chief Executive Officer Dr. Rod Houston
said the acquisition was a significant step for Synerject in achieving
its long term growth strategy and would compliment its existing
business.
"Synerject's due diligence has confirmed
that Delavan is generating considerably more business than we indicated
to the market back in November. The ensuing profit growth will be
a significant addition to Orbital's revenue streams from this part
of our business. Synerject has proven to be a valuable investment
for Orbital and I can see continuing opportunities for growth in
this market sector," said Dr. Houston.
Synerject, headquartered in Newport News, Virginia
with additional offices in France was formed in 1997 as a joint
venture between Orbital and Siemens VDO Automotive Corporation.
Synerject supplies engine management systems, modules and components
for the marine, recreational, motorcycle and industrial markets.
BRP US Inc. is a wholly-owned subsidiary of
Bombardier Recreational Products Inc. (BRP), a privately-held company
and a world leader in the design, development, manufacturing, distribution
and marketing of motorised recreational vehicles. Its portfolio
of brands and products includes: Ski Doo® and Lynx™ snowmobiles,
Sea Doo® watercraft and sport boats, Johnson® and Evinrude®
outboard engines, direct injection technologies such as Evinrude
E TEC®, Bombardier* ATV all-terrain vehicles, Rotax® engines
and karts.
More information on Synerject can be found
at www.synerject.com.
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