Hexagon Composites ASA has responded to the rapidly growing US natural gas vehicle market with a decision that will see production capacity reach new heights. Hexagon identifies the the most important market driver as the low price of natural gas resulting from developments in the North American shale gas market.
During the second half of 2013, Hexagon Lincoln’s production capacity for CNG cylinders for the bus and truck market (Tuffshell®) will have doubled in relation to its capacity in 2012. The new plan will double that again.
The new production line is expected to be operational towards the end of 2014.
Initial calculations indicate an investment of around NOK 150 million (USD 26.24 million).
The Board of Hexagon Composites has also approved a bond issue to finance this investment and other possible investments linked to development of the high-pressure area.
(Source: Hexagon Composites)