Orbital Engine Co Ltd involved in successful joint venture with American co

17/7/97

Premier Richard Court has witnessed first hand the inroads being made into marine engine development in the United States through technology developed by Western Australian engine designer Orbital Engine Company Limited.

A joint venture between Orbital and Brunswick Corporation's Mercury Marine division has had significant commercial success.

Mr Court, who toured Mercury's facilities in Wisconsin, said the strategic joint venture, called Meteor, was developing, manufacturing and marketing Orbital fuel systems.

"We have witnessed the 1998 model range of large outboards coming off this large production line and they feature WA-designed state-of-the-art fuel systems," he said.

"Western Australians can rightly feel very proud of this technological achievement.

"We were impressed with the great respect this world-leading manufacturer had for the Western Australians developing this technology."

The primary targets of the Meteor joint venture were not only the marine market, but the high-volume motorcycle and scooter manufacturers in Asia.

The Premier said Meteor had successfully concluded a new Asian licence with a near-term production time frame and a very large volume potential.

"It has also concluded a licence with Tohatsu, Japan's second largest marine engine manufacturer, which will use Meteor's fuel system on its outboards," he said.

Mr Court said the Meteor motorcycle and scooter project had been set up in Perth at Orbital's Balcatta facilities. The project was facilitated by the WA Government.

"Mercury Marine is the world's largest manufacturer of outboard marine engines - producing about 400,000 annually - and has been a licensee of Orbital's since 1986," he said.

"It actively promoted Orbital technology as an emissions solution for outboard engines until the regulations were finalised in 1993-1995.

"These emissions regulations will be met on all engines above 75 horsepower at Mercury by adopting Orbital technology on all these models over the next few years.

"Mercury will this month be introducing four new models on to the US market using Orbital technology.

"Orbital is actively pursuing the application of its technology on marine products below 75 horsepower with a number of new low-cost technologies."

The joint venture's first manufacturing cell for the Small Engine Fuel Injection System (SEFIS) was established in Perth with a capacity close to 70,000 units.

Mr Court said these successes promised a growing business for Meteor in WA.

"The negotiated licences place WA in a position to have an ongoing manufacturing role for the mass production of the units," he said.

"The Department of Commerce and Trade assisted the development of the cell by linking Meteor with WA's Advanced Manufacturing Technologies Centre (AMTC)."

The two organisations have agreed to establish an:

·      advanced engineering design centre;

·      advanced foundry and casting technologies capability;

·      AMTC/ Orbital School of Orbital Combustion Process; and -

·      customised course in Advanced Manufacturing Production Techniques.

About $470,000 will be invested by AMTC and Orbital in these initiatives, which will provide WA industry with leading edge facilities previously unavailable.

Mercury Marine has continued to build its world market share over the past five years and holds a very dominant position in in-board engines.

Sales from Brunswick's marine activities totalled US$2.3 billion in 1996. It was the first company to commit to the manufacture of Orbital products on a high-volume basis. It currently purchases both technology and fuel systems from Orbital and its affiliates.

"These developments just show how persistence, enterprise and innovation by a WA firm can have a global impact on industry," Mr Court said.

Media contact: Casey Cahill 222 9475