Hexagon Annual Report 2019

62 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Sustainability Report Fully-automated production line R&D, INNOVATION AND WORLD CLASS MANUFACTURING Whilst Hexagon believes its products are of the highest quality, it also acknowledges that R&D and innovation are key for renewing operations and ensuring long term financial and environmental sustainability. Hexagon strives to cultivate a strong relationship between research, mate- rial selection, product design, development and world class manufacturing to ensure optimal, cost-effective solutions. Hexagon continues to develop its team of R&D engineers, including product development engineers and project lead- ers. In 2019 there were about 40 ongoing projects related to enhancing product quality, increasing output, reducing environmental impact through recycling or reuse of scrap materials. Combined R&D and innovation effort in 2019 increased 85% compared to 2018. Positive improvements were realized in composite design efficiencies, permeation reduction, liquid propane storage, gas storage, hydrogen resistance and damage tolerance. Results INDICATOR UNIT 2019 2018 R&D engineers FTEs 130 120 R&D efforts MNOK 141.1 N/A 1) Governmental grants MNOK 8.4 19.2 Status and targets • In 2019, Hexagon Ragasco completed the enhancement of the multilayer process, which has reduced permeation and improved the quality and environmental footprint of the LPG cylinders. • Hexagon Purus expanded its manufacturing capacity in Kassel, Germany for CNG Light-Duty Vehicles. • Hexagon is prepared to expand its capacity in 2020. This includes increasing capacity at its manufacturing facility in Lincoln, Nebraska, which targets the CNG Heavy-Duty segment. 1) Data not available