Nan Ya Plastics Corp. outlined an ambitious NT$22.6 billion ($706 million) restructuring plan as Taiwan’s chemical manufacturers grapple with escalating trade tensions between the United States and China.
Chairman Wu Chia-chao told shareholders that the company would pursue what he termed “four transformations and three development directions” to navigate mounting tariff barriers and geopolitical uncertainty. The strategy targets electronic and semiconductor materials, low-carbon products, and medical applications, with projected annual revenue gains exceeding NT$42.5 billion ($1.33 billion).
The transformation comes as Taiwan faces potential 32% U.S. tariffs on exports, currently suspended during trade negotiations. Taiwan’s manufacturing sector confronts heightened uncertainty as the Trump administration pressures the island over trade imbalances while China retaliates with its own levies.
Nan Ya reported earnings per share of NT$0.42 last year, declining from the previous period, yet approved an excess cash dividend of NT$0.7 per share. The company plans to consolidate adhesive tape production across Taiwan, China, and U.S. facilities while closing certain chemical lines in favor of low-carbon alternatives.
The medical materials push includes developing blood bags, cell culture products, and surgical films, leveraging connections with Taiwan’s Chang Gung medical system. Nan Ya recently partnered with Taiwan Mitsui Chemicals on biomass-based materials, signaling the industry’s broader shift toward sustainable alternatives.
Whether these investments can offset trade war disruptions remains uncertain as chemical manufacturers navigate an increasingly fragmented global market.
