The Dow Chemical Company (NYSE: Dow), through its wholly-owned
subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.Ş.
(ISE: AKSA) today signed a definitive agreement to form a joint
venture to manufacture and commercialize carbon fiber and
derivatives.
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. 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, where weight
savings, emissions reduction, durability and energy efficiency are
key performance factors. Currently, the carbon fiber composites
industry is estimated at $10 billion U.S. dollars globally and is
expected to reach $40 billion US dollars by 2022.
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 JV 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 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. 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.”
Akk�k Group of Companies Chief Executive Officer and Aksa
Board Chairman Mehmet Ali Berkman said, “Making Turkey the
second biggest acrylic fiber market in the world with its leading
position in technical fiber and production capacity in acrylic
fiber, AKSA has achieved an important position in the international
market with the carbon fiber. 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 fiber and carbon fiber 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.”
Executive Vice-President and Chief Commercial Officer Heinz
Haller said, “This joint venture will leverage Dow’s expertise
in composites technology, formulation, and technical service as
well as market knowledge and channels. Upon completion, the joint
venture will be the carbon fiber composites industry’s only
large-scale, full-service, integrated solution provider, serving
the emerging needs of the world’s leading industries. With this
agreement, we aim to create competitive advantage in the global
markets in which carbon fiber composites are used.”
İlker Aycı, President of Turkey’s Investment Support and
Promotion Agency, said, “This joint venture represents
advancement for Turkey’s industrial and economic diversification
into strategically important critical industries aimed at providing
value-added solutions to significant and expanding regional and
global markets. We are pleased about the formation of an enterprise
that will meet the increasing demand for fiber composite technology
and bring an opportunity for significant impact on the expansion of
value-added exports.”
The joint venture agreement was signed today in a meeting
attended by Minister of Industry and Trade Nihat Ergün, President
of Turkey’s Investment Support and Promotion Agency İlker Aycı, Dow
Executive Vice President and Chief Commercial Officer Heinz Haller
and Akk�k Group of Companies Chief Executive Officer and Aksa Board
Chairman Mehmet Ali Berkman.
About Dow
Dow (NYSE: Dow) combines the power of science and technology
with the "Human Element" 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 2010, Dow had annual sales of $53.7
billion and employed approximately 50,000 people worldwide. The
Company's more than 5,000 products are manufactured at 188 sites in
35 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
About AKSA
AKSA Akrilik Kimya Sanayii A.Ş. (Istanbul Stock Exchange: ASKA)
is the world’s 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. Aksa’s 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. Aksa’s turnover in
2010 was more than US$850 million, and is expected to exceed $900
million in 2011. Aksa is a member of the AKKÖK Group of Companies
which is comprised of 15 companies operating in Turkey’s chemical,
energy, real estate and textile sectors. The Group has more than
3,200 employees. In 2010, the Group’s turnover was more than US$2.7
billion. More information about Aksa can be found at
www.aksa.com.
About ISPAT (Turkey’s Investment Support and Promotion
Agency)
The Investment Support and Promotion Agency of Turkey (ISPAT) is
the government organization that mainly provides all relevant
services to overseas businesses that want to locate in Turkey. Its
range of expert services is tailored to the needs of individual
businesses to maximize their international success. ISPAT provides
the international investors with all the updated information needed
for setting up or expanding a business in Turkey. By optimizing
conditions for the business projects of international investors,
ISPAT offers services which add value in a number of key
areas. For more information; www.invest.gov.tr
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