ORBITAL AND TEXMACO SIGN MANUFACTURING AGREEMENT
For OCP 2-Stroke Engine Family
PERTH, Western Australia, Dec. 18 /PRNewswire/ -- PT Texmaco Perkasa Engineering
Tbk. (TPE), a leading industrial company incorporated in the Republic
of Indonesia, today announced its decision to license from the Orbital
Engine Corporation (NYSE: OE) the rights to manufacture a range of Orbital
Combustion Process (OCP) two-stroke engines. These engines are targeted
for use in various automotive applications for both domestic and global
markets.
It is anticipated that the first OCP 3-cylinder 2-stroke engines made
by Texmaco will be in production within two years at initial volumes of
approximately 30,000 units per annum. These engines will be followed
closely by 2-cylinder and 1-cylinder versions.
"In addition to servicing Texmaco's internal product demands, Orbital
views the new engine manufacturing venture as strategically placed to
supply, low-cost, high-quality OCP engines to independent vehicle manufacturers
worldwide," said Kim Schlunke, Orbital's Chief Executive Officer.
OCP 2-stroke engines can be produced at up to 30% less cost than equivalent
performance conventional 4-stroke engines due to the potential of 40%
parts reduction, and 30% lighter weight. Such benefits allow substantial
reductions in fuel consumption, further reducing the production of carbon
monoxide, a major contributor to greenhouse gases. The application of
OCP Direct Injection to a 2-stroke automotive engine enables compliance
with European Stage III and California ULEV legislation for exhaust emissions
with a simple two-way oxidation-only catalyst.
"By adopting OCP technology, Texmaco is making a great contribution to
improving the environment in the region and eventually the world," said
Mr. Schlunke.
Orbital launched a highly successful release of 100, OCP 3-cylinder 2-stroke
vehicles into the Australian market in 1996. This fleet has accumulated
in excess of 4.25 million kilometers over the last two and a half years
and has proved invaluable in demonstrating the merits of an automotive
two-stroke engine for the consumer and the manufacturer alike in terms
of performance, reliability and cost.
TPE is an established OEM automotive component supplier in local and export
markets, and has technology agreements with Cummins (USA) for diesel engines,
ZF (Germany) for gears and transmissions, Steyr (Austria) for large capacity
engines and axles, and Eaton (USA) for axles. Product plans include medium-
and heavy-duty trucks and light commercial vehicles, used in agricultural,
engineering, construction and mining industries. TPE announced earlier
this week that the first 300 Perkasa trucks would be launched in February
1999 with an 85% local content and at a price 30% less than similar imported
models.
"This agreement highlights the willingness of emerging automotive manufacturers
to secure a strategic competitive advantage in the crowded automotive
industry," said Kim Schlunke. "It's a further endorsement of the potential
of Orbital's advanced OCP two-stroke engine technology."
TPE is a member of the Texmaco Group of Companies, with over 35 years
of manufacturing experience. Texmaco is a major international group with
sales throughout the world in textiles, basic metals, industrial equipment,
engineering, automotive component manufacturing and vehicle assembly.
The group employs over 30,000 people worldwide and had a turnover of
around US$1 billion last financial year including US$400 million in exports.
TPE has operating plants in Karawang and Subang, both in West Java, and
Kaliwungu in Central Java. Individual
facilities comprise over 100,000 square meters of manufacturing space.
Orbital is a leading international developer of engine technologies using
direct in-cylinder fuel injection and lean-burn systems for enhanced fuel
economy and lower emissions. The company serves the worldwide automotive,
marine, recreational and motorcycle markets. Headquartered in Perth, Western
Australia, Orbital stock is traded on the Australian Stock Exchange (OEC),
the New York Stock Exchange (OE) as well as the Berlin (ORE) and Frankfurt
(OREA) Exchanges.
SOURCE Orbital Engine Corporation
-0- 12/18/98 /CONTACT: Indonesia, E. Lovette
of Texmaco Perkasa Engineering Tbk., +62-267-432-838, email, eglovet@ibm.net;
or Australia, Ken Johnsen +61-8-9441-2311, or USA, Roberta Saling, 517-423-1551,
or Shaun Duffy, 734-604-0600, both of Orbital Engine, email, info@orbeng.com.au/
/Web site: indoexchange.com /Web site: orbeng.com.au
(OE)
CO: Orbital Engine Corporation; PT Texmaco Perkasa Engineering Tbk.
ST: Australia, Indonesia IN: AUT SU: LIC
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