MIDLAND, MICH. (July 5, 10:15 a.m. ET) — Dow Chemical Co. and fiber company Aksa Akrilik Kimya Sanayii AS have officially formed DowAksa Advanced Composites Holdings BV (DowAksa), a joint venture to manufacture carbon fiber and derivatives.
The companies previously signed an agreement to form the JV on Dec. 20.
DowAksa will develop a broad range of products and offer technical service in the rapidly expanding carbon-fiber composites industry.
The JV will focus on solutions that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets, a statement said. Emphasis will be on cost-effective solutions for industrial applications, energy, transport, and infrastructure globally.
Very strong and lightweight materials based on carbon-fiber are used in a variety of applications in growth industries, where weight savings, emissions reduction, durability, and energy efficiency are key performance factors, according to the statement.
Currently, Dow said, the carbon fiber composites industry is estimated to value $10 billion globally, and is expected to reach $40 billion by 2022.
Aksa has been making carbon fiber since 2009 at its Yalova, Turkey, factory, and the JV will expand these production assets and create a large-scale, integrated facility to make advanced carbon fiber products.
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.