Dow Chemical and Turkish acrylic fiber company Aksa on Friday announced the official formation of DowAksa Advanced Composites, a joint venture (JV) to manufacture and commercialize carbon fiber and derivatives.
Aksa and Dow had previously signed a definitive agreement to form the venture on December 20, 2011.
DowAksa will develop and globally market a broad range of products and technical service support in the rapidly expanding carbon-fiber composites industry, the companies said.
The JV 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.
Emphasis will be on bringing cost-effective solutions to industrial market applications for energy, transportation, and global infrastructure, officials said.
Strong and lightweight, carbon-fiber based materials are used in a variety of applications in growth industries, where weight savings, emissions reduction, durability, and energy efficiency are key performance factors.
Currently, the carbon fiber composites industry is estimated at $10 billion globally and is expected to reach $40 billion by 2022.
The JV will expand on existing Aksa 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 companies said.
Aksa and Dow each hold a 50% stake in the JV, which will finance its growth through cash flow from operations and financial institutions.
The formation of this JV is another demonstration that Dow is advancing its innovation and growth strategy and our commitment to pursue 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 for innovative solutions that address pressing global challenges, such as improving the fuel economy of automobiles, and extending the life of roads and buildings.