Future Prospects

Taiwan’s leading paint companies are looking overseas for expansion opportunities, in particular in China, as prospects at home become more limited. Companies in Taiwan’s newer IT and electronic sectors have now followed other, traditional manufacturers on the path to manufacturing in China. Some Taiwanese paint companies are following their customers to the mainland to maintain their business relationships, while the Chinese market in general is of course a huge prospect.

With Taiwan now a member of the WTO and import tariffs due to be lowered as a result, the smaller paint manufacturers will feel squeezed. Cheaper imports may well capture some of their traditional market and may lead to mergers or to companies exiting the market altogether if prices drop sharply. Competition is set to remain fierce, and in the future several companies may seek expansion through acquisition, while others seek niche market status.