Steel Industry of Taiwan Province
Located in the west Pacific Ocean, the tropical island of Taiwan has quickly become an economic powerhouse. It is home to nearly 23 million people and boasts a strong, ever-developing economy. With one of the highest GDP figures in Asia, Taiwan has become one of the world’s leading global exporters. One of Taiwan’s most important sectors is the steel industry. Although the Taiwanese steel industry is a relatively small one, it has the potential to become one of the major players in the global steel trade.
Taiwan’s steel industry dates back to 1959 when the government established the Taiwan Steel Corporation (TISCO). Since then, the industry has steadily expanded, with the number of steel-producing facilities increasing from just 15 in 1970 to over 100 by 1999. As of 2010, there are more than 40 steel companies in Taiwan, with several of them listed on the Taiwanese Stock Exchange.
The island of Taiwan is well-suited for steel production, being able to provide the necessary raw materials, such as iron ore, coal and limestone. In addition, Taiwan’s bordering seas provide an abundance of fish, an important source of phosphates used in the steel smelting process.
Taiwan’s steel industry is divided into two distinct sectors:
The first is the heavy industry sector, which makes large-scale steel products such as steel pipes, railroad tracks, and reinforcement bars. The second is the light industry sector, which produces small to medium-sized steel products such as screws, nails and fasteners.
The two sectors have been estimated to contribute approximately 27% and 42% to the country’s economy respectively. The majority of Taiwanese steel production is exported to leading trading nations such as China, the United States and Japan.
Taiwan’s steel industry has faced a number of challenges in recent years. As demand for steel products has fallen off in the global markets, many steel companies within Taiwan have had to experience production cuts and increasing levels of debt. In addition, the weakened global economies have impacted the export markets, reducing the ability of Taiwanese steel producers to compete on the international stage.
To counter these issues, the Taiwanese government recently announced a comprehensive economic stimulus package. This included a variety of measures aimed at strengthening and promoting the steel industry. These included providing large-scale funding and incentives to private steel companies to increase their productivity and competitiveness.
As of 2013, there are several signs of a turnaround in Taiwan’s steel industry. Production has increased by 5.2 percent, employment by 6.5 percent, and exports by 11.1 percent. The steel industry is expected to continue to experience growth in the coming years.
As a result of the increasing global demand for steel, Taiwan hopes to expand its presence in the international steel market. The nation has an old and established steel industry, with the necessary resources and a talented, hardworking workforce. If Taiwan is able to capitalize on these strengths, it could become one of the major players in the steel market.
