Dow Chemical and Turkey-based Aksa Akrilik Kimya Sanayii
A.Ş. on Tuesday signed a definitive agreement to form a
joint venture to manufacture and commercialize carbon fiber and
The joint venture will develop and globally market a broad
range of products and technical service support in the rapidly
expanding carbon-fiber based composites industry.
Strong and lightweight, carbon-fiber based materials are
used in a variety of applications in growth industries such as
wind energy, construction, transportation, and
infrastructure, where weight savings, emissions reduction, durability and
energy efficiency are key factors.
Currently, the carbon fiber composites industry is
estimated at $10 billion globally and is expected to reach $40
billion by 2022, according to company officials.
Under terms of the agreement, Dow and Aksa will each hold a 50%
stake in the joint venture. Following initial equity
investments from the two companies, the JV will finance its
growth through cash flow from operations and financial
Total investment in the project, including third party
investments, is expected to reach $1 billion in five years and
create up to 1,000 employment opportunities, the companies
The JV will expand on Aksas existing carbon fiber
production assets in Yalova, Turkey, and will capture growth by
creating a large-scale, integrated production capability for
the manufacture and supply of advanced carbon fiber 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
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,
said Dow CEO Andrew Liveris.
Together our companies will apply science, world-class
manufacturing capabilities and technical expertise to deliver
innovative solutions that address some of the worlds 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.