Hexagon Composites` wholly-owned subsidiary Hexagon Raufoss, restructures its operating model to achieve profitable operations.

As a result of prolonged weak profitability, the decision has been taken to implement a restructuring and downsizing process in Hexagon Raufoss. The company has terminated all its employee contracts and has implemented a modified operating model where operational services will be performed by its sister company Hexagon Ragasco. The restructuring includes workforce reductions through natural retirements, internal transfers and lay-offs. Eight employees have found other positions outside the Group, eleven employees will be offered employment in sister company, while 14 employees have been laid-off. Employee representatives have been consulted throughout the restructuring process.

"Given the necessity to implement the restructuring process the selected operating model provides the best basis for healthy continuing operations, "says Managing Director Ragnar Holthe at Hexagon Raufoss. "This is a challenging situation for the company and our employees, and we regret that good employees will have to leave the company."

Hexagon Raufoss, which is located in Raufoss, develops and manufactures fuel tanks for gas-powered cars.

For more information:
Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | solveig.saether@hexagon.no

Ragnar Holthe, Managing Director, Hexagon Raufoss AS
Telephone: +47 970 74 245 | E-mail: ragnar.holthe@hexagonraufoss.com

Hexagon Composites ASA is a leading global supplier of composite pressure cylinders for gas applications. Based in Ålesund, Norway, the Group generated NOK 1 651 million in operating income in 2014. Production is carried out in modern, automated plants in Norway and the US.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Hexagon Composites ASA via GlobeNewswire
HUG#1947562