Hexagon Composites ASA : Saudi Gasco and Hexagon Ragasco sign five-year distribution agreement
National Gas and Industrial Company (Gasco) and Hexagon Composites' subsidiary Hexagon Ragasco have entered into a long-term distribution agreement. The five-year agreement covers the distribution of composite LPG cylinders to the domestic Saudi Arabian market.
As part of the agreement the first composite LPG cylinders will be shipped in the fourth quarter of this year and will be introduced to the Saudi market during first quarter of next year. The parties have agreed not to disclose specific details of the transaction.
- We are pleased to have this agreement in place with Hexagon Ragasco where it will be positively reflected as an added value to our products and a unique experience to the customers. This initiative by Gasco is to give our customers the chance to use Hexagon Ragasco's light cylinders that have high levels of usability, says Dr. Eyas Al Hajery, CEO of Gasco.
- The long-term distribution agreement with Gasco represents a milestone in our strategy of securing growth and improved capacity utilization in the second half of the year. We believe that this alliance will strengthen our position in the Middle East region where Saudi Arabia is one of the largest markets for domestic LPG usage. This further confirms that Hexagon Ragasco's composite cylinders to an increasing degree are recognized as the new generation LPG cylinders and a good business investment as they help LPG marketers worldwide maintain or increase market share and build customer loyalty, says Skjalg S. Stavheim, Managing Director of Hexagon Ragasco.
For more information:
Skjalg S. Stavheim, Managing Director, Hexagon Ragasco AS
Mobile: +47 977 95 565 | email@example.com
Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | E-mail: firstname.lastname@example.org
Gasco was incorporated in 1963 (1383H) via the merger of National Gas Company in Dammam and its two branches in Riyadh and Jeddah together with Saudi manufacturing and Gas Company in Riyadh and its branches in Dammam. In the beginning of the seventies, many companies and small firms were incorporated to fill and distribute LPG. However, the severe inter-competition led to low service levels and irregular continuity of gas provision which required the government to intervene and decide to merge the incorporating company with National Manufacturing and Gas Company (GASCO) by the end of 1975 (1395H).
Gasco's main activities are the transportation, filling, and marketing of Liquefied Petroleum Gas (LPG), which consists of propane (C3H8), butane (C4H10), or a mixture of both. Gasco generated revenues of SAR 1.8 BN in 2014.
About Hexagon Ragasco
Hexagon Ragasco is the world's leading producer of composite LPG cylinders with over 10 million units in commercial use. The high-volume, highly automated production facility in Raufoss, Norway is the most advanced of its kind world-wide. Hexagon Ragasco's products are unique and provide many advantages over traditional steel cylinders in terms of safety and user-friendliness.
Hexagon Ragasco is a wholly-owned subsidiary of Hexagon Composites ASA, a leading global supplier of composite pressure cylinders for gas applications. Hexagon Composites ASA is a publicly listed company with its headquarters in Aalesund, Norway. In 2014 the Group had sales of NOK 1 651 million to customers world-wide.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Hexagon Composites ASA via Globenewswire
Source: Thomson Reuters ONE
(September 23, 2015 - 2:31 AM EDT)
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