¥20 Million Investment Lands in Qingdao: China and Japan Join Hands to Build High-Active Zinc Oxide Production Base

On August 18, Qingdao Huaqi New Material Technology Co., Ltd. and Japan’s Inoue Lime Industry Co., Ltd. officially signed a joint venture agreement to establish Qingdao Huaqi Inoue New Material Co., Ltd.. The new company is located in the Environmental Industrial Park of Jimo District, Qingdao, with a factory built to Japan’s high standards. It is scheduled to commence production in October 2025 with an initial annual capacity of 5,000 tons of high-active zinc oxide and pre-dispersed rubber masterbatch, serving applications in automotive components, medical rubber products, latex gloves, and electronic wearables.

According to the agreement, Qingdao Huaqi will hold a 60% stake, while Inoue will hold 40%. The total planned investment is RMB 20 million, with an initial capital injection of RMB 5 million. The joint venture will focus on the R&D, production, and sales of high-active zinc oxide and pre-dispersed rubber masterbatch, with a target of reaching a monthly output of 400 tons of high-active zinc oxide within three years.

Inoue Lime Industry, with 140 years of expertise in calcium oxide and over 40 years of experience in high-active zinc oxide, has long maintained a leading position in Japan’s high-end rubber products market. Qingdao Huaqi, having acted as Inoue’s agent in China for eight years, has successfully expanded sales through its strong market channels and operational capabilities. Building on this partnership, the two companies have decided to upgrade from trade cooperation to capital cooperation, aiming to achieve localized production, cost optimization, and faster market response.

By localizing production, the joint venture will significantly reduce import tariffs and logistics costs, lowering product prices by an estimated 20–30% compared with imports and further strengthening competitiveness in the Chinese domestic market. At the same time, leveraging Huaqi’s sales channels and China’s manufacturing “going global” trend, the company will expand into Southeast Asian markets and even re-export products to Japan and South Korea. With Inoue’s well-established sales network, the joint venture aims to realize the vision of “Made in China, Sold Globally.”

In recent years, China’s rubber additives industry has faced intensifying competition and mounting price pressure, while demand from downstream sectors such as automotive, healthcare, and electronics continues to grow. High-active zinc oxide is recognized for its outstanding vulcanization-promoting properties and dispersion performance, while pre-dispersed masterbatch requires exceptionally high consistency in quality—both products are considered technologically demanding. Inoue’s expertise in raw material quality control and process management, combined with China’s cost advantages, will position the joint venture more firmly in global competition.

Wei Xing, General Manager of Qingdao Huaqi New Material Technology Co., Ltd., stated: “We will leverage Inoue’s century-long technological expertise and Huaqi’s local experience to build an industry platform of ‘China Production, Global Service.’” Inoue President Takashi Inoue added: “By joining hands, we aim not only for business success but also to build trust that goes beyond commerce.” With the establishment and future commissioning of the new company, Qingdao Huaqi Inoue New Material Co., Ltd. will bring fresh capacity and higher-quality solutions to the rubber materials industry in China and worldwide.