The largest U.S. chemicals manufacturer, The Dow Chemical Company (DOW) and Aksa Akrilik Kimya Sanayii (AKSA) AS, a Turkish maker of synthetic acrylic fibers, announced a Memorandum of Understanding (MOU) with the intent to form a joint venture to make carbon fiber and derivatives.
Strong and lightweight, carbon-fiber based materials are in demand for use in alternative energy projects like wind power. They're also used in vehicle and infrastructure products.
Through this partnership the companies plan to examine opportunities to produce a broad range of carbon fiber-based composite materials and provide technical support to customers.
Aksa and Dow will use their know-how, global production capacity and technical expertise to offer innovative solutions in crucial issues such as increasing the performance of wind turbines, improving the fuel efficiency in automotives and supporting the solidity of buildings and infrastructure facilities.
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.
Aksa is a pioneer company in terms of presenting new products and technologies, and by partnering with Dow, Aksa will empower its leading position in both local and global markets.
Dow Chemical on the other hand, through this partnership will broaden its down-stream, integrated solutions offering. The company supplies high-performance materials, agricultural products, plastics (polyethylene and polypropylene) and industrial chemicals to industries and consumers globally.
The company’s products have a vast array of applications and are used by various industries including farming, construction, transportation, electronics and consumer goods. Dow enjoys a good reputation in sustainability, as demonstrated by its 2015 Sustainability Goals to reduce energy consumption and emissions.
Recently, Dow reported its first quarter 2011 results. The company earned $0.82 per share in the first quarter of 2011, ahead of the Zacks Consensus Estimate of $0.67 as well as last year’s $0.43. However, including one-time charges, the company earned $0.54 per share compared with $0.41 in the year-ago quarter.
Quarterly revenues jumped 20% year over year to $14.7 billion and were above the Zacks Consensus Estimate of $13.8 billion. Volume and pricing gains across all business segments and geographical regions, particularly North America and Europe, yielded healthy revenue growth.
Dow anticipates that demand would improve further, especially in Asia with the global economic recovery. The US and European markets have also started showing signs of improvement. Dow is also optimistic on major consumer-markets, including electronics, coatings, automotive and packaging. However, construction markets are expected to remain weak.
DOW faces stiff competition from EI DuPont de Nemours & Co. (DD).
Currently, Dow has a short-term (1 to 3 months) Zacks #1 Rank (Strong Buy) but a long- term Neutral recommendation.
DU PONT (EI) DE (DD): Free Stock Analysis Report
Be the first to comment