Dow and Aksa Sign Memorandum of Understanding to Form
Integrated Carbon Fiber and Derivatives Joint Venture
Business to offer carbon fiber and derivatives to growing energy, transportation and infrastructure markets.
MIDLAND, Mich., USA and ISTANBUL, TURKEY – June 6, 2011 – (BUSINESS WIRE) – The Dow Chemical Company (NYSE: Dow), through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A. ?. (Aksa) (ISE: AKSA) today announced a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture and globally commercialize carbon fiber and derivatives.
Through this agreement, both companies will work together to explore opportunities to create fully-integrated production facilities for the manufacture and global supply of carbon fibers and derivatives. The companies will examine opportunities to develop and market a broad range of products and technical service offerings in the carbon fiber-based composites industry.
“This new partnership with Aksa is another example of how Dow continues to advance its innovation agenda and broaden our down-stream, integrated solutions offering,” said Dow Chairman and CEO Andrew N. Liveris.
“Together, Aksa and Dow 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.”
Very strong and lightweight, carbon-fiber based materials are used in a variety of applications in many growth industries, such as wind energy, transportation, and infrastructure, where weight savings, durability and energy efficiency are key performance factors.
“By partnering with a global leader such as Dow, we will further strengthen Aksa’s leadership position in both our local community and global markets. Aksa has been a pioneer at introducing new products and technologies and with this partnership will accelerate our pace in the future. In addition to the continued efforts of our dedicated, hard working, competent employees, we also count on strong contributions of all our partners in the process chain, including our governments, to create and meet the demand for this interesting new technology,” said Mehmet Ali Berkman, Chairman of the Board of Aksa. “This technology race to develop carbon fiber composites will offer improved products and solutions for the betterment of mankind.”
“By partnering together, Aksa and Dow will create the carbon fiber composites industry’s only large scale, full-service, fully integrated solution provider serving the growing needs of the world’s leading industries,” stated Heinz Haller, Dow’s Executive Vice President and Chief Commercial Officer. “Current megatrends underpin increasing demand for alternative energy resources as well as safer, more efficient vehicles. Therefore, innovative technologies that deliver strong, light-weight materials are in great demand. This partnership combines the individual strengths of each company to provide the market with better solutions while also helping solve some of the world’s most pressing challenges.”
“Today, the fiber composite market is experiencing tremendous growth on a global scale and, customers are not only demanding products that perform better, they need suppliers that combine reliability, technical expertise and affordability,” said Mustafa Yilmaz, Aksa Board Member. “As the world’s largest producer of acrylic fibers and a carbon fiber producer since 2008, Aksa is very excited about the opportunity to partner with Dow to explore large, downstream opportunities, and expand our carbon fiber-based product offering world-wide. By combining our technical and market knowledge and our significant positions in industry, we will accelerate the development and commercialization of these new products and at the same time raise the industry standard for performance.”
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.?. (Istanbul Stock Exchange: ASKA) is the world’s largest producer of acrylic fiber with 308.000 mt per year capacity and more than 13% market 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 40 companies operating in Turkey’s chemical, energy, real estate and textile sectors. The Group has more than 4.000 employees. In 2010, the Group’s turnover was more than US$2.5 billion. More information about Aksa can be found at www.aksa.com.
For Editorial Information:
Myra E. Dean
The Dow Chemical Company
+1 989 638 6969
Buket Koral
AKSA Akrilik Kimya Sanayii A.?.
+90 212 251 4500
AKSA to Invest US$ 65 million to Erect 2nd
Carbon Fiber Production Line
AKSA to more than double its carbon fiber production capacity by 2012.
Enjoying a success story with its startup in carbon fiber production, a field not entered
by any new company for at least 25 years, AKSA is accelerating its investments in this
field. The Board of Directors of AKSA decided to further its investment in carbon fiber
as a ‘strategic raw material for the 21st century’.
The Board decided that the annual capacity of the existing line should be improved by
300 tons, and that a 65-million-dollar investment be made to erect a second Carbon
Fiber production line, with a nominal capacity of 1.700 tons/year, and that the new
line be commissioned by July, 2012.
AKSA had previously, during 2008-2009, made a US$ 85 million investment in carbon
fiber technology and initial production facility, entirely engineered by Turkish
engineers. The formal opening of the plant was made by Turkey’s Prime Minister
Recep Tayyip Erdogan on July 23, 2010.
Playing an influential role in world markets in acrylic fiber with its market share of 12,5%, and
aiming to achieve the same success for carbon fiber sold world-wide under its AKSACA brand,
AKSA has pressed the button for erection of its second carbon fiber production plant. The Board
of Directors of AKSA decided to make a capacity increasing investment to its first carbon fiber
line, which has a capacity of 1.500 tons/year and and which is currently operating at full capacity,
and to erect a second carbon fiber line with a capacity of 1.700 tons/year, in line with its target
of achieving 10% market share by 2020 in carbon fiber.
Mustafa Y?lmaz, Member of the Board of Directors and General Manager of AKSA Akrilik Kimya
Sanayi A.?., says: “our Board of Directors decided to increase its investments in field of carbon
fiber, which, we believe, would be one of strategic industries our country, thanks to its high
value-added. The Board decided that, first of all, a 7-million-dollar investment be made for
enhancing the existing line’s capacity by 300 tons/year and that such additional capacity be
commissioned for commercial production by November, 2011; and that a 65-million-dollar
investment be made for a second carbon fiber production line with a capacity of 1.700 tons/year
and that such new line be commissioned for commercial production by July, 2012. We aim to
enhance the domestic market as well as to participate in world markets, and, thus, to achieve
the same market share in carbon fiber as we have in acrylic fiber.”
About Akrilik Kimya San. A.?.
A member of Akkök Group of Companies, AKSA Akrilik Kimya Sanayii A.?. is manufacturing acrylic fiber, classified as synthetic based fiber, used as primary input in world textile sector, and, thus, contributes to textile and industrial textile industry of over 50 countries in five continents.
Handling its manufacturing operations at its factory built over an area of 430.000 m2, known as the ‘factory-withlargest-capacity-under-the-same-roof’ of the world, the Company achieved a world market share of 12.5% in acrylic fiber sector at end of 2009. AKSA’s world market share in outdoor fiber, a specialty product, is above 50%.
AKSA is the first company which introduced acrylic fiber to the Turkish textile industry. In this process, developing Turkish acrylic fiber market has become the second largest acrylic market of the world, only ranking after China.
Our country is, currently, a net exporter only in acrylic fiber sector among synthetic fibers. AKSA now directs its focus on carbon fiber and the carbon fiber based composite sector, as a new sphere of business, considered to be a strategic product which promises applications in aviation, space sector materials, sporting goods, a variety of industrial applications including energy, transportation, electronics, as well as in building and infrastructure reinforcement. Thanks to its carbon fiber investment realized under its strategy dedicated to development of new products, AKSA has entered the sector and started up business operations as the 9th carbon fiber producer in the world. AKSA’s strategic objective for 2020 is to increase its market share in carbon
fiber up to 10%.
Standard carbon fiber, which is an important type of fiber and which replaces steel in many branches of industry on the strength of its high mechanical properties, is 3-fold stronger than steel and 4,5-fold lighter than steel. Apart from high strength and low density, it is also anticorrosive.
Reflecting advantages of economies of scale for its customers and acting as a solution partner for them, AKSA is a preferred supplier not only in Turkey, but also all over the world thanks to its flexible and agile production planning, fast shipment capabilities and proximity to market.
For Immediate Release
February 27, 2009
For more information, please contact:
Dee James (D.J.) DeLong
DeLong and Associates, LLC
+1 678.627.8277
Turkish Acrylic Fiber Manufacturer, AKSA, Announces Sales Representatives in the Americas for Carbon Fibers
Atlanta – Acrylic fiber manufacturer Akrilik Kimya Sanayii A. ?. (AKSA) of Istanbul, Turkey announced today an exclusive relationship with Atlanta-based DeLong and Associates, LLC to represent and market AKSA’s new AKSACATM Carbon Fiber in the Americas.
AKSA operates the largest acrylic fiber facility in the world, representing twelve percent (12%) of worldwide capacity. AKSA built on forty years of acrylic fiber experience to create the precursor for carbon fiber production. The precursor is now being converted to AKSACATM PAN-based carbon fiber at AKSA’s facility in Turkey at a pilot production line. AKSA is nearing completion of its 1,500 ton capacity full scale line. The new, world-class line will start up in mid-2009.
The scale of AKSA’s facilities for precursor production will create a favorable cost position that will enable them to effectively compete in any end use and market condition. AKSA believes that industrial consumers of carbon fiber are underserved during periods of aerospace demand. Their goal is to be the supplier of choice for industrial end users of carbon fibers.
The AKSACA™ product line consists of standard modulus, medium and high tensile strength fibers in tow counts of 3K, 6K, 12K and 24K. AKSACA™ fibers will be shipped from various USA stocking points.
DeLong and Associates will focus on the sales of PAN-based carbon fibers to industrial end users, including weavers, pultruders, filament winders, molders and prepreggers.
Mr. M. Yilmaz, general manager for acrylic and carbon fibers at AKSA states: “The selection of DeLong and Associates, LLC as sales representatives will accelerate the sales of AKSACA™ carbon fibers in the Americas. They provide an experienced sales and technical team with over 100 years of composites industry experience to our new customers.”
DeLong and Associates, LLC was founded in 2001 by Dee James (D.J.) DeLong as a carbon fiber industry consultancy. DeLong was formerly the general manager of BP Amoco’s carbon fiber business unit. He has consulted on a number of international projects and chaired global market and financial conferences on carbon fibers five times. DeLong has over twenty-five years of PAN-based carbon fiber sales, marketing and operations experience.
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For information on availability or to place an order contact Cindy@aksacausa.com
