The booming North American natural gas market is prompting Norway’s Hexagon Composites ASA to invest $25.8 million (150 million Norwegian kroner) to expand production of its natural gas container business in Lincoln, Neb.
Hexagon’s Tuffshell composite cylinders are used to store compressed natural gas powering buses and trucks. The rising availability of natural gas from North American shale gas production is leading to low costs and easy access to natural gas used to power vehicles, especially mass transit buses, the company said in a June 3 news release.
Hexagon Composites is based in Ålesund, Norway, with U.S. operations in Lincoln.
With the added capacity, Hexagon said it will be able to double its capacity by the end of 2013 in comparison with 2012.
“We wish to establish an automated and cost-effective production line, so as to achieve the greatest possible competitive effect,” said CEO Tore J. Fjell.