Dow and Aksa sign JV agreement for carbon fiber and derivatives

The Dow Chemical Company, through its wholly-owned subsidiary Dow Europe GmbH, has signed a 50-50 joint venture agreement with Turkish acrylic fiber maker Aksa Akrilik Kimya Sanayii A.S. to manufacture and commercialize carbon fiber and derivatives.

Total investment in the project, including third party investments, is expected to reach US$1 billion in five years and create up to 1,000 employment opportunities, Dow said in a press release.

“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,” the statement said. “The JV will expand on Aksa’s 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.”

Very 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, Dow said, where weight savings, emissions reduction, durability and energy efficiency are key performance factors.

Currently, the carbon fiber composites industry is estimated at US$10 billion globally and is expected to reach US$40 billion by 2022, Dow added.