OXE Marine AB (publ) - Assessment of the automotive 2.0 litre turbo diesel engine for next generation of the OXE200 series and co-branding of the OXE300

STOCKHOLM, July 22, 2020 /PRNewswire/ -- OXE Marine AB (publ) (the "Company") has today entered into a Preliminary Development Agreement (PDA) with the BMW Group to carry out a preliminary study of its 2.0 litre, 4 cylinder turbo diesel engine for marine application - to power the Company's next generation of OXE200 series. Additionally, both companies have agreed to co-brand the OXE300 to further develop the Company's marketing and sales strategy with the aim of promoting the premium quality of the product.

The Company's current OXE200 series utilises GM's 2 litre, 4 cylinder turbo diesel engine - it produces 200hp at the propeller whilst delivering 415 Nm of torque at the crank. This specific powerhead is now reaching end of life and the Company has been evaluating options for the next generation of the OXE200 series. The company has sufficient number of power heads for 2021 production. The company had engaged with the BMW Group to explore the possibility of marinizing its 2.0 litre, 4 cylinder turbo engine. This has culminated with the signing of a Preliminary Development Agreement ("PDA") today which assesses whether the marinized powerhead will meet the Company's requirements, particularly of producing 200hp at the propeller and 400Nm of torque at the crank, whilst meeting all pertinent emission regulations. The Company is confident this engine will meet all its requirement to power the next generation of the OXE200 series.

Following a successful assessment of the powerhead for marinization purposes, the Company will proceed with developing the next generation of the OXE200 series. The start of production will be confirmed closer the time when the parties enter into a Supply and Development Agreement ("SDA"). The Company has also set targets for continuous improvements in delivering a world class product that meets the demanding needs of its commercial and governmental customers.

Following the successful collaboration with the BMW Group of marinizing their 3 litre, 6 cylinder bi-turbo engine for use in the OXE300s, both parties have agreed to co-brand the OXE300. The purpose of this is to develop the overall sales and marketing initiatives with the focus on the premium quality aspects of the product - as phrased in the Company's promise of delivering "products of unprecedented power, reliability and endurance". The BMW logo and the caption "In cooperation with BMW" is to be displayed on the side and rear of the cowling as well as to be used in various marketing material.

"I am really pleased of our collaboration with the BMW Group with respect to the OXE300 Bison project. They have set the example of an ideal collaboration partner, providing all the necessary resources and support in making not only the development of the product a success but also assisting with production standards and promoting the product from a sales and marketing standpoint. Not surprisingly, both parties are keen to continue their collaboration and have entered into a PDA to assess the marinization of 4-cylinder diesel engine for the next generation of the OXE200 series - I am confident the powerhead will meet all our requirements and am excited for our future as we continue to improve and broaden our product offering", says Myron Mahendra, CEO, OXE Marine AB. 

"OXE Marine offers the BMW Group a chance to re-enter the marine business after several years of absence. We therefore decided to take up the challenge and support this outstanding development project transforming a BMW 6-cylinder automotive diesel into an outboard engine. It turned out to be a very professional collaboration with OXE Marine in all aspects with a very unique product as an outcome, especially since the state of the art BMW-Diesel Technology helps to significantly reduce the CO₂-Footprint of outboard engines. Therefore, we are looking forward to the next challenge using the 4-cylinder diesel engine as a basis for the OXE200.", says Uwe Breitweg, BMW Vice President Powertrain Systems Business Customers.

CONTACT:

Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail [email protected].

For further information, please contact:
Myron Mahendra, CEO, [email protected], +46 76 347 59 82
Anders Berg, Chairman, [email protected], +46 70 358 91 55

OXE Marine AB (publ) is obligated to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 22 July 2020 at 17.00 CET

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SOURCE OXE Marine AB