Hexagon Composites approves discontinuation of the production of LPG cylinders at Composite Scandinavia AB

Reference is made to stock exchange release dated 6th March 2012 related to discontinuation of the production of composite LPG cylinders in Piteå, Sweden.

After discussions with the employee representatives, Hexagon Composites' subsidiary Composite Scandinavia AB has decided to discontinue the production of composite LPG cylinders in Piteå, Sweden. The discontinuation implies a reduction of 16 employees. Composite Scandinavia AB will remain as a company managing licenses, service and support. The company will retain four employees in the company.

Hexagon Composites expects the discontinuation of the production to be effective during fourth quarter of 2012.

The decision is based on a weaker market for LPG cylinders and available capacity at Hexagon Composites' subsidiary Ragasco AS. Hexagon Composites aims to concentrate the production of LPG-cylinders to one factory. This will increase the capacity utilization at Ragasco in Norway and lead to improved production efficiency of the Group's LPG-cylinders. Cost-effective production is essential to meet the market challenges.

The established customer relations will be continued, and future deliveries will be based on Ragasco product technology.

For further information, please contact:
Erik Espeset, Group President, Hexagon Composites ASA
Mobile: +47 905 20 033 | E-mail: erik.espeset@hexagon.no

Solveig D Saether, Communications Manager, Hexagon Composites ASA
Mobile: +47 906 34 977 | E-mail: solveig.saether@hexagon.no

Göran Svahn, CEO, Composite Scandinavia AB
Mobile: +46 70 663 99 03 | E-mail: goran.svahn@compositescandinavia.se