Dow Europe, a subsidiary of Dow Chemical Company, has entered into a joint venture agreement with Aksa Akrilik Kimya Sanayii to develop, manufacture and market carbon fibre and its derivatives.
Under the agreement, Dow and Aksa will each hold a 50% stake in the joint venture.
The total investment in the project, including third party investments, is expected to reach $1bn in five years and create up to 1,000 jobs.
The joint venture will broaden Aksa's existing carbon fibre production assets in Yalova, Turkey, and help form a large-scale, integrated production capability for the manufacturing and supply of advanced carbon fibre technologies.
Dow chairman and CEO Andrew Liveris said that the companies will jointly apply science, manufacturing capabilities and technical expertise to deliver solutions that increase the energy capture of wind turbines, improve the fuel economy in cars, and extend the life of roads and buildings.
Aksa chairman Mehmet Ali Berkman said, "Carbon fibre composites have importance in transportation, wind energy technologies and construction, particularly for earthquake-resistant buildings.
"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."
Dow executive vice-president and chief commercial officer Heinz Haller said that upon the joint venture's completion, Dow will be the carbon fibre composites industry's integrated solution provider, serving the emerging needs of the leading industries.
"With this agreement, we aim to create competitive advantage in the global markets in which carbon fibre composites are used," Haller added.
