Parent to Invest Nearly $26 Million in Nebraska CNG Cylinder Plant
Norway’s Hexagon Composites, citing a growing market for natural gas vehicles in North America, reports an aggressive expansion plan for the Hexagon Lincoln factory in Lincoln, Neb. The parent company plans to invest an estimated 150 Norwegian krone, upwards of $25.8 million at current rates of exchange, to double Lincoln’s production capability for Type IV all-composite compressed natural gas fuel cylinders – again.
“During the second half of 2013, Lincoln’s capacity will have doubled in relation to its capacity in 2012,” states a release.
“The planned production line is expected to once again double the production capacity for CNG cylinders for the bus and truck market (Tuffshell) compared with the second half of 2013.
“This corresponds to four times the capacity in 2012. The new production line is expected to be operational towards the end of 2014.”
‘An Automated and Dedicated Production Line’
“This investment will give Hexagon Lincoln an automated and dedicated production line aimed specifically at the production of pressure cylinders for larger vehicles,” the company says.
“Because of the great market potential for pressure cylinders for larger vehicles in the USA, we wish to take the lead with essential investments so that we can meet customer needs,” Hexagon Composites CEO Tore Fjell says in the company announcement.
“We wish to establish an automated and cost-effective production line, so as to achieve the greatest possible competitive effect,” Fjell said.
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Source: Hexagon Composites with Fleets & Fuels follow-up