Sino-Japanese JV to produce rubber chemicals in China

Qingdao, China – Japan-based Inoue Lime Industry has set up a joint venture with long-term trading partner Qingdao Huaqi New Materials Technology to manufacture and sell zinc oxide and other rubber chemicals in China.

The new company, Qingdao Huaqi Inoue New Materials Co. Ltd., was formally signed 18 Aug in Qingdao, Shandong province, the Japanese supplier announced.

The JV will have a capital of Yen100 million (€570,000), with Qingdao Huaqi holding 60% and Inoue Lime 40%.

Operations are planned to start in late October with an initial capacity of 5 kilotonnes per annum (ktpa), according to Inoue.

The JV will combine Inoue’s technical expertise in the manufacture of highly active zinc oxide and calcium hydroxide with Qingdao Huaqi’s manufacturing base and sales network in China.

The aim is to supply “high-value-added products that combine quality and price competitiveness” to the Chinese and Southeast Asian markets.

Local production will also lower costs compared with imports and allow powdered materials to be converted into masterbatches, eliminating dust generation at manufacturing sites.

The JV is aimed to achieve a monthly sales target of 400 tonnes of highly active zinc oxide at the new plant within three years, according to Qingdao Huaqi general manager Wei Xing.

Inoue described China as “an extremely attractive market for rubber materials,” with its strong automotive production footprint.

The two partners have been collaborating in the Chinese market since 2018 with Qingdao Huaqi acting as the authorised distributor of Inoue's products.

“The new company will ensure price competitiveness by lowering product prices compared to imported products through local production,” said Takashi Inoue, president and representative director of Inoue.