Texmaco signs engine deal

Texmaco signs engine deal

PERTH (Dow Jones): Australia's Orbital Engine Corp. (OE), an
engine technology concern, Monday said Indonesia's PT Texmaco
Perkasa Engineering has signed a license agreement to manufacture
a range of Orbital Combustion Process two-stoke engines.

The Indonesian engineering and heavy equipment company intends
to produce 30,000 three-cylinder two-stroke engines within two
years, Orbital said in a statement.

The three-cylinder engines will be closely followed by two-
cylinder and one-cylinder versions, Orbital said.

"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 Chief Executive Officer.

Orbital will give Texmaco the technical know-how to set up a
production plant in Subang, Java, in return for a royalty of
between 3 percent and 5 percent on each engine, Orbital company
representative Ken Johnsen later told Dow Jones Newswires.