Automotive fuel systems provider Agility Fuel Systems has formed a joint venture (JV) with the compressed natural gas (CNG) storage cylinders producer Hexagon Lincoln.
Announced at the Alternative Clean Transportation Expo, the move will allow both the companies to leverage their technical and R&D expertise to better integrate cylinder/system designs.
The new JV will be known as Agility Hexagon.
Under the new JV, the companies are planning to develop a new differentiated cylinder based on Agility fuel systems as well as establish a dedicated cylinder production facility located that will be co-located with a new fuel system assembly operation to be built by Agility.
Hexagon Lincoln president Jack Schimenti said through the joint venture the company will be able to better meet Agility's specific needs, while continuing to supply all of its customers with the products and services.
"The combined capacity, production and purchasing efficiencies will simply be unmatched by anyone in the industry," Schimenti added.
The new facility is expected to support Agility and Hexagon's current manufacturing and also offer better economies of scale, logistical costs and response times.
Agility CEO Barry Engle said the joint venture ensures that the company will always have sufficient cylinder capacity to meet customers' needs.
"It helps us bring product innovations to market even more quickly and maximizes operational efficiencies," Engle added.
"We see this integration as a logical next step in our evolution and are pleased to take our partnership with Hexagon Lincoln to the next level."
