Hexagon Composites considering options for Hexagon Devold business

By Michael Lauzon
Correspondent

Published: August 26, 2013 2:58 pm ET
Updated: August 27, 2013 10:20 am ET

Related to this story

Topics Mergers & Acquisitions, Composites

Norwegian composites producer Hexagon Composites ASA is looking at options for its Hexagon Devold AS business, including its sale.

Hexagon Devold, based in Langevag, Norway, is Hexagon Composites' composites reinforcements subsidiary. It runs a composites reinforcements plant in Shelby, N.C., that mainly makes products used in wind turbines. The Shelby operation is included in Hexagon Composites' search for strategic options for the Devold unit, confirmed Hexagon Composites spokeswoman Solveig Saether in an email correspondence.

Hexagon Composites' other U.S. business is based in Lincoln, Neb., where it makes liquefied petroleum gas cylinders and high-pressure cylinders, the other two business areas for Hexagon Composites. These are not part of the search for strategic options. The Lincoln business, in contrast, is being expanded at a cost of Norwegian Kroner 150 million ($24.9 million). The expansion by the end of 2013 should double production capacity to make products such as the Titan and Tuffshell composite cylinders and tanks.

Hexagon Composites said rising output of shale-derived natural gas in the United States is boosting usage of compressed natural gas in buses and other vehicles, lifting demand for pressure-resistant vessels to hold the fuel. One customer placed a new order worth about US$9 million for products made in Lincoln.

The reinforced composites sector in which Hexagon Devold participates faces structural changes and consolidation, the company explained in an Aug. 22 news release.

"We see significant economies of scale in the industry, and as part of a consolidated structure we will be in a position to achieve further profitable growth," stated Hexagon Composites managing director Kåre Dybvik.

Hexagon Composites' businesses use reinforced carbon fiber and glass fiber in its products, according to Saether. The company, based in Åeslund, Norway, trades on the Oslo exchange. For the first six months of 2013, Hexagon Composites' sales grew 30 percent to NOK 713.8 million ($118.5 million). Operating profit before EBITDA was NOK 123 million ($20.4 million), up 86 percent.


Comments

Hexagon Composites considering options for Hexagon Devold business

By Michael Lauzon
Correspondent

Published: August 26, 2013 2:58 pm ET
Updated: August 27, 2013 10:20 am ET

Post Your Comments


Back to story


More stories

Image

Australia's Orora buys Texas packaging distributor Worldwide Plastics

September 2, 2014 2:54 pm ET

Australian packaging company Orora Ltd. has bought San Antonio, Texas-based plastic packaging distributor Worldwide Plastics Co.    More

Image

A. Schulman buys Australia's Compco, 10th acquisition in 4 years

September 2, 2014 11:13 am ET

Akron, Ohio-based A. Schulman Inc., a supplier of high-performance plastic compounds and resins, said it has acquired a company near Melbourne,...    More

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it Ti...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events