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2015 AT A GLANCE

2015 has been a strong year for our Heavy-Duty Vehicles

segment, despite the narrowing price delta between

natural gas and oil. The market remains robust. Existing

end customers remain committed to their programs,

however adoption rates by new customers have been

slower than previously estimated. We expect this to

change when the price of oil rebounds.

Strong sales in 2015 were driven by the new 27-inch

diameter cylinder in North America, which was launched

in the beginning of the year. High demand for CNG-

powered transit buses in the US and Europe was also a

main factor. We see increasing momentum in the Asian

and South American bus markets, mainly in response to

environmental concerns.

Our Mobile Pipeline™ business faced challenging market

conditions throughout the year, which resulted in a

substantial reduction in realized orders. North American

orders from the oil and gas sector have stopped, and

general macro-related uncertainties have delayed

investment decisions in Latin America. We continue to

expect significant growth opportunities in these markets

medium and long term, but have limited visibility at this

point in time.

Hydrogen fuel cell vehicles are essential to the global

low-carbon, low-emission future. We are well positioned

across the hydrogen value chain with strong operations

supporting passenger cars, transit buses, ground storage

and backup power solutions. We expect increasing

momentum during 2016.

In 2015 Hexagon Ragasco entered several new geographical

markets. We expect this to support our strategy of im-

proved capacity utilization in the second half of the year,

which historically has been slow due to seasonality in

Europe. Long-term agreements suggest composite

cylinders are the preferred choice of many LPG resellers.

Hexagon Composites maintains an expectation of significant growth despite

the impacts of low oil and diesel prices experienced recently. The increasing

global focus on lower emissions and reduced particulates will drive demand for

natural gas, biomethane, hydrogen and other alternative fuels in the coming

years. In 2015 Hexagon Composites consolidated its operations to position

itself for this growth.

Words from the Group President

2015 AT A GLANCE

STRATEGY AND OBJECTIVES GROUP RESULTS

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