Leveraging growth opportunities

The establishment of Hexagon Purus, the acquisitions of Agility Fuel Solutions and Digital Wave, as well as the investments in the LPG cylinder plant at Hexagon Ragasco are among the highlights that have made us an even stronger force in “Driving energy transformation” during 2018.

With the growing momentum in the transition to a low-carbon economy, the world is demanding actions from authorities and market players including car manufacturers, energy providers and technology innovators.

The global automotive industry has entered a phase of restructuring to meet local emission regulations. An expanding list of countries are banning the future sale of diesel and petrol cars. The transport sector represents as much as 22% of global CO2 emissions. The European Union is finally coming to an agreement to a 30% cut in truck CO2 emissions.

"After the recent acquisitions of Agility Fuel Solutions
and Digital Wave Corporation, the Hexagon Group has
expanded its footprint and strengthened its leading
position with a broader offering."

We continue to see strong market build-up in the hydrogen space, with significant plans announced by several players. By the end of 2018 nearly 10,000 FCEVs were in operation, and the vision for the role of hydrogen as one of the key energy sources of the future is being realized.

The increasing alignment of economic and environmental benefits is driving the market adoption of cleaner alternatives. Hexagon is positioned in the middle of this exciting development as a trusted partner for cleaner and cost-effective solutions.


After the recent acquisitions of Agility Fuel Solutions and Digital Wave Corporation, the Hexagon Group has expanded its footprint and strengthened its leading position with a broader offering.

We reached a historic milestone with the acquisition of the remaining fifty percent share of Agility Fuel Solutions. The investment strengthens Hexagon's position as the globally leading clean fuel solutions provider. Agility experienced a strong 2018. The Heavy-Duty Truck segment rebounded in the second half of the year. The North American and European Transit Bus market as well as the Refuse Truck market were strong throughout the year.

With the acquisition of Digital Wave, we have fully integrated capabilities for testing and requalification of high-pressure cylinders with the most advanced capabilities and technology currently available.

Since the acquisition of xperion in late 2016, we have integrated and consolidated the organizational structure and realized synergies. To meet the growing market opportunities for renewable fuels solutions, we launched the new business area Hexagon Purus for our Hydrogen and CNG Light-Duty Vehicles activities early last year, further sharpening our clean energy focus. In 2018 we received our second and third serial production order for hydrogen tanks for Fuel Cell Electric Vehicles (FCEVs) from leading OEMs. These contracts reaffirm our leading position and confirm the long-term potential for zero-emissions vehicles. We continue to make substantial organizational investments to capture the Hydrogen opportunity. These plans are dilutive to short and medium-term profitability, however accretive to long-term shareholder value.

The strong gas mobility drive in the European light-duty vehicle market continues to stimulate demand for our lightweight CNG cylinders. Driven by increased environmental focus and emissions regulations, the outlook for 2019 remains very positive.

The launch of the large capacity TITAN®53 gas transport module, with the market’s largest composite cylinder tanks, is already proving successful with its greater capacity to weight ratio. The Mobile Pipeline® segment continued the upward trend in 2018, and the favorable fundamental drivers point to continued strong demand.

Hexagon Ragasco reached a milestone when we celebrated 15 million cylinders sold worldwide in 2018. The production investments at the LPG cylinder facility which was completed in early 2019, further enhance manufacturing efficiency and product differentiation, as well as provide more capacity.


The addition of Digital Wave into our technology portfolio gives us line of sight to smart sensing of cylinders. We look forward to enhancing our Mobile Pipeline® modules to digitally communicate critical performance parameters and real time analysis.


We base our culture on our core values of Integrity and Drive as the globally leading clean fuel solutions provider. My team and I are excited about our opportunities, and I am convinced that we will become an even stronger force in driving energy transformation globally by promoting the alternatives of natural gas, biogas, hydrogen, propane and electrification.

I thank our shareholders and other key stakeholders for their continued support during 2018.