Orbital signs supply agreement with Boeing

Drone technology company Orbital UAV has signed a memorandum of understanding with Boeing subsidiary Insitu to become its primary engine supplier.

Under the agreement, Orbital will supply two Insitu-designed engines to the Washington-based subsidiary, with opportunities to increase production volumes.

It forms part of Orbital and Insitu’s long-term supply agreement, signed in October 2018.

Orbital managing director Todd Alder said the company had worked alongside Insitu since signing the expanded agreement.

“The memorandum of understanding represents further confidence in our capability as both a leading manufacturer and designer of the world’s best propulsion solutions for tactical unmanned aerial vehicles (drones),” Mr Alder said.

Balcatta-based Orbital said the MOA supported the company’s decision to locate its new production facility in Oregon in 2017.

Its shares closed up 11.8 per cent on the news to trade at 52 cents.