PERTH, Australia – Orbital Engine Corp. refinances its Synerject joint venture with Siemens-VDO Automotive Corp.
Orbital says the agreement on a restructuring of Synerject removes a potential obligation for it to have to pay Siemens up to $12.5 million. Previously, Orbital was the guarantor of the sum owed to Siemens by Synerject.
Siemens is providing $25 million to fund the JV, which manufactures the air injectors and fuel rail assemblies for Orbital's fuel systems.
As part of the deal, Orbital will transfer its marine and recreation systems business to Synerject. Siemens will add a non-automotive business providing systems for Rotax small engines.
Peter Cook, Orbital CEO, says in published reports the two businesses will raise Synerject's $30 million turnover by about 50%.