UPS on Wedesday announced plans to spend $450 million to add 6,000 vehicles powered by compressed natural gas, and parts of the CNG fuel systems will be made in Lincoln.
Agility Fuel Systems, which is a subsidiary company of Hexagon Composites, will manufacture the CNG fuel systems for UPS heavy-duty gas trucks, terminal tractors and its medium-duty walk-in vans.
The three-year contract has a total value to Agility of between $65 million and $95 million.
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The fuel tanks for the CNG systems will be manufactured in Lincoln, where Hexagon and Agility share a manufacturing facility in the LNK Enterprise Park.
Chet Dawes, senior vice president with Agility who is based in Lincoln, said the facility is currently expanding, in part to accommodate the new business from the UPS contract.