Dow and Aksa Announce Formation of Joint Venture for Carbon Fiber and Derivatives
- DowAksa to focus on solutions that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of industrial markets
- Emphasis to be on integrated carbon fiber composite solutions for growing energy, transportation and infrastructure markets globally
MIDLAND, Mich. & ISTANBUL, Turkey--(BUSINESS WIRE)-- The Dow Chemical Company (NYSE: DOW), through its wholly-owned subsidiary Dow Europe Holding BV, and Aksa Akrilik Kimya Sanayii A.^. (ISE: AKSA), a world-leading acrylic fiber company, today announced the official formation of DowAksa Advanced Composites Holdings BV (DowAksa), a joint venture (JV) to manufacture and commercialize carbon fiber and derivatives. Aksa and Dow had previously signed a definitive agreement to form the JV 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 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 infrastructure globally.
Very 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 USD $10 billion globally and is expected to reach USD $40 billion by 2022.
Aksas carbon fiber which is the output behind the R&Ds success, has been being produced since 2009 in the Yalova Factory. The JV will expand on 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.
Aksa and Dow each hold a 50 percent stake in the JV, which will finance its growth through cash flow from operations and financial institutions.
Dow Chairman and CEO Andrew Liveris said, 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. 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.
Akkök Group of Companies Chief Executive Officer and Aksa Board Chairman Mehmet Ali Berkman said, Already a world leader in acrylic fiber, Aksa took steps in 2011 in the carbon fiber sector with the target of increasing market share through investment in manufacturing capacity and productivity. With the formation of the joint venture, we are pleased that our carbon fiber technologies and production capabilities in Turkey will be essential to DowAksas future as world leader in advanced carbon fiber and derivatives. Carbon fiber composites, which are expected to replace metal as the material of the future, have significant importance in Turkey and around the world for fundamental industries such as transportation (automobile, high-speed train, vessels, heavy vehicles, etc.), wind energy technologies and construction, particularly for earthquake-resistant buildings.
Executive Vice-President and Chief Commercial Officer Heinz Haller said, This joint venture leverages Dows expertise in composites technology, formulation, and technical service as well as market knowledge and channels. Upon implementation of the joint venture strategy, DowAksa will be the carbon fiber composites industrys only large-scale, full-service, integrated solution provider, serving the emerging needs of the worlds leading industries and will have competitive advantage in the global markets in which carbon fiber composites are used.
AKSA Board of Directors Member and Akkök Executive Board Member Mustafa Y1lmaz emphasized that the cooperation made with Dow was very significant in terms of creating new business opportunities. AKSA functions as a reliable business partner for market and business world stakeholders that possesses technical expertise and provides better performance and economical advantage. While combining the market and technical knowledge of both companies with this joint venture we will also provide the carbon fiber and composite industry with higher performance products. This cooperation will also make positive contributions towards the growth of the composite industry in our country and our region.
Additional information can be found at www.dowandaksa.com.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2011, Dow had annual sales of $60 billion and employed approximately 52,000 people worldwide. The Company's more than 5,000 products are manufactured at 197 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
AKSA Akrilik Kimya Sanayii A.^. (Istanbul Stock Exchange: AKSA) is the worlds largest producer of acrylic fiber with 308,000 tons per year capacity and more than 14,2 percent share of the worldwide market. Products include acrylic textile fibers, technical fibers, and carbon fiber. Aksas mission is to be the choice for acrylic-based textiles and technical fibers, to work efficiently and in harmony with the environment, to be innovative and customer focused. Aksa has around 1,000 employees working at its production site in Yalova Turkey and offices in Istanbul. Aksas turnover in 2011 was more than US$978 million. Aksa is a member of the AKKÖK Group of Companies which is comprised of 15 companies operating in Turkeys chemical, energy, real estate and textile sectors. The Group has more than 3,200 employees. In 2011, the Groups turnover was more than US$2.9 billion. More information about Aksa can be found at www.aksa.com.
The Dow Chemical Company
Nancy Lamb, + 1 989 638 7251
The Dow Chemical Company
Tuçe Karata_, +90 216 57116 00
AKSA Akrilik Kimya Sanayii A.^.
Buket Koral, +90 212 251 45 00
Source: The Dow Chemical CompanyCopyright Business Wire 2012