Hexagon Composites to Supply High Pressure Fuel Tanks to Daimler AG

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Hexagon Composites ASA's wholly-owned subsidiary, Ragasco AS has signed a new major, multi-year contract with Daimler AG for the supply of high pressure containers. The contract covers the delivery of fuel tanks for natural gas to the next generation of today's Mercedes-Benz B-class. Ragasco AS is already supplying high-pressure containers in composite to today's Mercedes-Benz B-Class, an eco-friendly car that has been well received by the market.

The new contract, which is signed with Daimler, ensures a base of production volume for Ragasco beginning in the second half of 2012 and will contribute to the future goal to provide high-pressure products produced in an automated production line. Ragasco expects this production to become an integral part of the company's fully-automated production line for propane containers.

The new contract with Daimler supports the trust established through the development and delivery of high-pressure containers to other Mercedes models and platforms in recent years, and it confirms Ragasco's leading position in the industry. Containers in composite from Ragasco weigh only 30-35% of traditional CNG containers made of steel.

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