The joint venture will develop a range of products and technical service support in the carbon fibre based composites industry. According to US headquartered science and technology company Dow, the carbon fibre composites industry is estimated at US$10 billion globally and is expected to reach $40 billion by 2022.
Dow and Turkish acrylic fibre manufacturer AKSA, part of the Akkök Group, will each hold a 50% stake in the joint venture. Following initial equity investments from the two companies, the joint venture 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 US$1 billion in five years and create up to 1000 jobs.
The joint venture will expand on Aksa’s existing carbon fibre production in Yalova, Turkey, and will have a focus on bringing solutions to market that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets.
Carbon fibre in Turkey
"Carbon fibre 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," says Mehmet Ali Berkman, CEO of the Akkök Group and AKSA Board Chairman.
"The recognition of carbon fibre and carbon fibre 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.”
|“Upon completion, the joint venture will be the carbon fibre 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 fibre composites are used.”|
|Heinz Haller, Executive Vice-President and Chief Commercial Officer, Dow|