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.
Hexagon Ragasco light cylinders
- 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.
New generation LPG cylinders
- 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.
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.