Dow Chemical through its wholly-owned subsidiary Dow Europe and Aksa Akrilik Kimya Sanayii today signed a definitive agreement to form a joint venture to manufacture and commercialise carbon fibre and derivatives.
The joint venture will develop and market a broad range of products and technical services in the rapidly expanding carbon fibre based composites industry.
Under terms of the agreement, Dow and Aksa will each hold a 50 percent stake in the joint venture. Following initial equity investments from the two companies, the joint venture will finance its growth through cash flow from operations and financial institutions. Total investment in the project, including third party investments, is expected to reach $1 billion U.S. dollars in five years and create up to 1,000 employment opportunities.
The joint venture will expand on Aksa’s existing carbon fibre production assets in Yalova, Turkey, and will capture growth by creating a large-scale production capability for the manufacture and supply of advanced carbon fibre technologies.
The venture will have a particular focus on bringing solutions to market that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets. Dow Chairman and CEO Andrew Liveris said;
This partnership with Aksa is another strong example of how Dow is advancing its innovation and growth strategy, and demonstrates our unwavering commitment to invest in high-value, innovation-rich sectors through strategic partnerships. Together our companies will apply science, world-class manufacturing capabilities and technical expertise to deliver innovative solutions that address some of the world’s most pressing challenges, such as increasing the energy capture of wind turbines, improving the fuel economy of automobiles, and extending the life of roads and buildings.
Akkök Group of Companies Chief Executive Officer and Aksa Board Chairman Mehmet Ali Berkman said:
Making Turkey the second biggest acrylic fibre market in the world with its
leading position in technical fibre and production capacity in acrylic fiber, AKSA has achieved an important position in the international market with the carbon fibre. Carbon fiber composites, which will replace metal as the material of the future, have significant importance for fundamental industries in Turkey such as transportation (automobile, high speed train, vessels, heavy vehicles, etc.), wind energy technologies and construction, particularly for earthquake-resistant buildings. The recognition of carbon fibre and carbon finer composites within the scope of strategically important industries will enable Aksa and Dow to expand their joint investment targets and create significant economic value and employment for Yalova. In addition, this cooperation will contribute to 2023 targets of the Government of Republic of Turkey by creating significant added value and employment in energy efficiency, renewable energy, infrastructure investments and increasing exports.