Hexagon Composites

Regulatory Filings • Oct 18, 2023

Gasco Saudi Arabia and Hexagon Ragasco sign a five-year distribution agreement for new, custom-sized LPG cylinders.

Gasco Saudi Arabia and Hexagon Ragasco sign a five-year distribution agreement for new, custom-sized LPG cylinders.

18 October 2023: National Gas and Industrial Company (Gasco), the largest

Liquefied Petroleum Gas (LPG) distributor in the Kingdom of Saudi Arabia, and

Hexagon Composites' subsidiary Hexagon Ragasco have signed a long-term

distribution agreement. The five-year contract (2023-2028) covers the provision

and distribution of custom-made LPG cylinders on the Saudi Arabian domestic

market and is valued at approximately 20 million euros.

Gasco has played a significant role in the development of the composite cylinder

market in Saudi Arabia, which is the largest market for domestic LPG utilization

in the Middle East. Since 2015, Hexagon Ragasco has been a supplier to Gasco.

A Collaborative Strategy for Enhancing Operational Effectiveness

The new custom-sized composite cylinder by Hexagon Ragasco is specifically

designed to increase Gasco's filling and logistical operational efficiency. The

broader and shorter cylinder fits seamlessly with Gasco's filling systems and

logistic equipment, making filling, storage, and transport of the cylinders more

streamlined and efficient.

"We are pleased to have this agreement in place with our long-time partner,

Hexagon Ragasco. Hexagon Ragasco's collaborative approach continually adds value

to our business. The new cylinder is designed specifically for our existing

pallets and bottling systems, allowing us to fill and deliver modern LPG

composite cylinders more cost-effectively to customers that reap the benefits of

lightweight, durable composite cylinders and a lower CO2 footprint" says Eng.

Abdulrahman Bin Sulaiman, CEO of Gasco.

The new cylinder will be manufactured at Hexagon Ragasco's world-class, high-

volume, fully automated production facility in Raufoss, Norway.

"This is our second long-term distribution agreement with Gasco-an alliance that

has strengthened our position in the Middle East region over the last decade. As

a preferred supplier, we are able to engage with Gasco's team and help them

address some of the operational challenges that face business growth in a key

region for both the LPG industry and Hexagon Ragasco," says Skjalg Stavheim,

President of Hexagon Ragasco. "Today's announcement is an example of the role

customer intimacy plays in driving innovation."

Timing

The first new composite LPG cylinders will be shipped and introduced to the

Saudi market in 2024.

For more information:

Karen Romer, SVP Communications, Hexagon Composites ASA

Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites ASA

Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com

(mailto:ingrid.aarsnes@hexagongroup.com)

About National Gas and Industrial Company (Gasco)

Gasco was incorporated in 1963 (1383H) via the merger of National Gas Company in

Dammam and its two branches in Riyadh and Jeddah, together with Saudi

manufacturing and Gas Company in Riyadh and its branches in Dammam.

Gasco's main activities are transportation, filling, distributing, and marketing

of Liquefied Petroleum Gas (LPG), which consists of propane (C3H8), butane

(C4H10), or a mixture of both. Gasco has generated revenues of more than SAR 2

billion in 2022.

About Hexagon Ragasco AS

At Hexagon Ragasco, we are committed to quality, safety, and innovation. We are

the leading manufacturer of composite LPG cylinders, with an industry-leading

safety record of 20+ years and more than 20 million cylinders sold worldwide.

Our products bring unique benefits to both LPG marketers and their customers. ?

LPG has a significant role to play as a transitional energy source with the

potential to improve air quality and health for billions of people who rely on

highly polluting and toxic fuels as their primary energy source. We believe in

cleaner air and safer LPG for everyone, everywhere.

Learn more at www.hexagonragasco.com and follow @Hexagon_Ragasco on Twitter and

LinkedIn.

About Hexagon Composites

Hexagon delivers safe and innovative solutions for a cleaner energy future. Our

solutions enable storage, transportation, and conversion to clean energy in a

wide range of mobility, industrial and consumer applications.

Learn more at hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn

This information is considered to be inside information pursuant to the

EU Market Abuse Regulation and is subject to the disclosure requirements

pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock

exchange release was published by Ingrid Aarsnes, VP IR & ESG, Hexagon

Composites ASA on 18 October 2023 at 18:45 CEST.