Hexagon Composites Nominated by Major Car Manufacturer to Supply Fuel Tanks
03.07.2014 | STOCK EXCHANGE RELEASE
Hexagon Composites’ wholly owned subsidiary Hexagon Raufoss has been nominated by a major international car manufacturer to supply Type 4 high-pressure compressed natural gas (CNG) fuel tanks.
The cooperation commences in third quarter 2014 with an initial product development phase. The first deliveries are targeted for the beginning of 2017, and the program is scheduled to run for up to 7 years. The estimated overall delivery value is around NOK 525 million (approximately USD 90 million).
“This nomination puts Hexagon Composites in the lead position as Type 4 CNG tank supplier to the passenger car segment and contributes to growth for the company in the following years,” commented Jørn Helge Dahl, Director of Market and Sales at Hexagon Raufoss. “This further gives traction to CNG as an alternative fuel solution.”
With around 70% lower weight compared with a Type 1 steel cylinder the Type 4 composite cylinder manufactured by Hexagon Raufoss allows lower vehicle fuel consumption. CNG fuelled vehicles have significantly lower emissions than petrol and diesel fuelled vehicles.
About Hexagon Composites ASA
Hexagon Composites ASA is a publicly listed company with its headquarters located in Ålesund, Norway. The Group develops and produces composite cylinders for the storage and transport of various gases under pressure.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.