MIDLAND, Mich. (AP) — The Dow Chemical Co. said Tuesday that it reached a deal with Turkey's Aksa Akrilik Kimya Sanayii AS to create a joint venture to manufacture and commercialize carbon fiber and derivatives.
Specific financial terms were not disclosed.
Carbon-fiber based materials are very strong, lightweight and used in a variety of growth industries; including wind energy, construction, transportation, and infrastructure. The global carbon fiber composites industry is currently estimated at $10 billion, Dow said.
Under terms of the deal Dow, based in Midland, Mich., and Aksa will each hold a 50 percent stake in the joint venture. After initial equity investments from the two companies, the joint venture will finance its growth through cash from its operations and borrowings, Dow said.
Total investment in the project is expected to reach $1 billion in five years and create up to 1,000 jobs. The joint venture will use Aksa's existing carbon fiber production facilities in Turkey and will create a large-scale production capability for the manufacture and supply of carbon fiber technologies, Dow said.
