The industrial development programs as part of the Second Four-Year Economic Development Plan put into effect in 1957 have been mapped out to coordinate the long and short term economic requirements, fully explore the natural resources on Taiwan, increase production in order to keep up with wartime demands, improve the quality of industrial products, enhance productivity and efficiency, and promote inter-regional economic cooperation with foreign countries, particularly with countries in Southeast Asia. In order to attain these goals, the Government has taken various measures to provide for the proper working atmosphere: the adoption of the unitary exchange rate to strengthen and increase exports; the decontrol of cement, jute, coal, etc., to ensure the healthy development of local economy; the partial lifting of the ban on setting up new factories, to encourage free competition; and the flotation of corporation bonds to facilitate manufacturers to raise capital for their long-term requirements. There are other constructive measures now under serious consideration of the Government, such as the establishment of stock exchange, the further improvement of tax structure, and the revision of the Company Law. When all these ideas are translated into action, Taiwan will become even more attractive to foreign investors, who in turn would help contribute to the healthy development of local industries.
The achievements of all industries in 1958 have not been uniform. If compared with 1957, however, the production of a great number of industries has gone up. According to the Ministry of Economic Affairs, the general indexes of industrial production (including mining, manufacturing, construction, and public utilities) for 1958 showed a gain of 33% and 39.7% respectively as compared with 1954 which is used as the base year. The following is a tabulation of the target and actual output of 32 major products in 1958 in comparison with the actual output of the previous year:
An analysis of the data above reveals that, of the 32 major products listed, the output of sugar, fertilizer, cement, paper, caustic soda, carbonate, rayon filament, petroleum, diesel oil, fuel oil, salt, steel bars, canned pineapples, fluorescent lamps has exceeded the projected goals, while other commodities or supplies have not attained their original targets. In 1958, gains have been registered for 21 out of the 31 major products listed above. The most remarkable increases are rayon filament, fluorescent lamps and canned pineapples, which have gained 97.9%, 85.8% and 52.6% respectively in 1958.
Equally important as the quantitative increase in the development of Taiwan's industry is its qualitative improvement, which is one of the prerequisites to the exploration of overseas markets. Owing to limited local needs, Taiwan's industry has long been suffering from the chronic illnesses of oversupply of its own products. The effective promotion of their foreign markets would be the best way out. During the past year, the Government has been paying considerable attention to the improvement of quality and reduction of the costs of local products, in order that they may compete in the international markets. For the same reason, the systems of examination and inspection have been greatly strengthened. These endeavors have already proved to be fruitful. Of the total export value of 1957, industrial products comprised only 73%. The same products were worth as high as 11.4% of the total export value of 1958.
1959 is the third year of the Second Four-Year Economic Development Plan. For diverse reasons, the production goals of most of the major products have been adjusted downward by 13.6%. The revised production targets, if compared with 1958, are still 6.1% higher. All programs are being carried out according to schedule and expect to be consummated at the end of this year. The Government is now engaged in designing different kinds of programs for the Third Four-Year Economic Development Plan, under which industry will continue to receive priority considerations.
China Productivity Center (CPrC)
The China Productivity Center was established in 1955 as a Chinese staffed technical consultation firm designed to serve the small and medium-sized industries. Initial support was obtained from Chinese interest and the U.S. Mutual Security Mission to China.
The Center aims to raise the overall productivity of Taiwan by the introduction of mass production techniques and U.S. distribution methods. The five integral operating departments in the Center are industrial engineering, industrial distribution, small industry mechanical consultation, industrial training and technical exchange services.
In order to achieve effective results, CPrC considers the application of industrial engineering techniques most important and of first priority. 29 specific programs were carried out during the period from February 1957 to March 1959. As a particular example, CPrC since 1957 has assisted more than 15 manufacturers in implementing statistical quality control programs. As a result, improvement has shown both in technique and the quality of products.
Programs of industrial distribution are implemented through two general lines of services: marketing consultation service, and "Buy Taiwan Movement." Services to industrial and business clients included market survey, packaging improvement, sales promotion, publication of Taiwan Buyer's Guide, and clearing house services, etc. Products related to market surveying service alone have been well over 500 items.
Consultation and technical assistance offered to small and medium-sized industries proved to be another effective means of promoting industrial productivity. These services are rendered either by on-the-spot consultation or through "Question and Answer." Specific consultation service including plant design, manufacturing method improvement, trouble shooting advice etc. is also rendered to individual factories upon request. Up to March 1959, close to 500 factories were benefited.
CPrC's industrial training programs may be divided into two major categories: local programs, such as conducting technology seminars, management seminars, and industrial engineering seminars, and US and third country programs, such as organizing impact teams to U.S., sponsoring specialists to be trained in U.S. and third country.
Since the establishment of CPrC more than 2,000 participants representing 300 organizations have been trained by CPrC in one field or another, and about 9,000 persons have attended the public lectures and demonstrations sponsored by CPrC.
Technical exchange service covers an extensive field of activities: question and answer service, industrial library and film service, and publications. Their aim is to raise the intellectual level of the industrial public and to enhance the industrial productivity as a whole.
Since its inception in November 1955 until June 1959, CPrC has handled a total of 3,003 cases of inquiry for local industries and for others who are interested in industries. During the same period, there were more than 25,000 persons from various industrial fields using the CPrC's library. Up to date, there are 100 subscribers of the library service. As industrial film service, 168 film showing have been made with a total attendance of 20,000. CPrC has also published and distributed technical information or literature that is found useful to the industry. 53 booklets, two series of posters, the "Buyer's Guide" and a monthly magazine called "Productivity" have been published and distributed.
Electric Power
The Taiwan Power Company (TAIPOWER), a government run enterprise organized in 1946 is the sole supplier of electric power on the whole island of Taiwan. When war-torn power facilities were taken over by TAIPOWER in 1945, the whole system was barely able to carry a load of 33,000 kw. After strenuous rehabilitation of existing facilities the former record peak load of 177,000 kw reached under Japanese management was surpassed by October of 1950. In 1951 two separate power systems on the island were integrated by the East-West transmission line. In 1953, in order to cope with the rapid load growth, TAIPOWER launched the First Development Program which aimed at almost doubling the then system capacity of 330,000 kw in five years. As construction of thermal power takes less time, this program included some 130,000 kw in thermal projects, which covered the new 80,000 kw Nanpu station at Kaohsiung and 40,000 kw addition to the Peipu station at Chilung (Keelung).
The 171,000 kw of hydro capacity constructed under this First Program included the addition of two 26,500 kw units to the Tienlun station on the Tachia River the rehabilitation of the Tungmen Project on the east coast (covering the construction of a new underground power with 21,000 kw installation), the Wusheh Dam Project, designed by U. S. Bureau of Reclamation, which contributes 42,000 kw firm power to the system by virtue of its large storage reservoir, and the underground Lungchien Project on the east coast with one 48,600 kw unit operating at a high head of 893 meters (2,930 ft.).
The First Development Program has already been brought to a successful conclusion and the Second Development Program was initiated in 1957. Apart from the Shihmen Reservoir Multi-purpose Project whose power facilities when completed will be connected with TAIPOWER's system, TAIPOWER itself is undertaking the construction of 215,000 kw in thermal units and 90,000 kw in hydro units under the Second Development Program. The first termal unit of 75,000 kw will be completed by the end of 1959 and the second of 140,000 kw is scheduled for completion by the end of 1961. The first two hydro units (45,000 kw each) of the Kukuan Project, which is also an underground station, are now under construction, scheduled for operation in early 1961. The dam for this Project is of the thin arch type and is unique in having a submerged gate spillway at the middle of the dam body.
As a result of the two Development Programs launched by TAIPOWER, the total installed capacity has reached 633,000 kw in 36 power stations. It is served by a primary trunk line of 154,000 volts running the length of the island from north to south. The East-West Tie Line and some other lines on the east coast are operated at 66,000 volts. Along this primary line are ten primary substations, through which the voltage is stepped down to 33,000 volts to supply the secondary substations at the load centers. The feeders coming out from these secondary substations are operated at 3,300 volts.
The average annual increase of power output in the postwar years in Taiwan is as high as 18% compared with 6% to 10% common in other countries. System output in 1958 was 2,880 million kwh representing 287 kwh per capita which is the second highest in Asia, next only to Japan. The average annual increase of energy sales has been more than 18% since 1946. In 1958 the total sales amounted to 2,416 million hwh of which 80% went to industries and 20% to residential and commercial customers. Of the large amount of electrical energy used by the booming industries, fertilizer is the most important and heaviest consumer. As much as 24% of the industrial power consumption goes into fertilizer production at present. The aluminum industry, with a consumption of 11%, comes second. Since 1946, power consumption by a few industries has increased many times; for example, textile 78 times, machinery 40 times, chemical (including fertilizer) 36 times, and ceramics (including cement) 24 times.
The number of customers at the end of World War II was 395,823. Since then new customers have been added yearly and the total will reach the one-million mark by the end of 1959. By then, a total of 699 villages will have power supply and 59,000 rural customers will have been added to the system.
In order to meet the ever-increasing consumption of power resulted from industrial and business prosperity, increase of population and rising standard of living, TAIPOWER is prepared to launch more development programs after the present one is completed in 1961. The subsequent programs will be featured by the active and concentrate development of the Tachia Valley. The key of this multi-purpose development is the Tachien Reservoir, which will provide an effective storage capacity of 494,000,000 cubic meters (400,000 acre ft.). Regulated flow will be released to run a series of six plants with an ultimate installed capacity of 1,384,000 kw, utilizing a total drop of about 1,200 meters (about 4,000 ft.), and also to irrigate about 53,000 hectares of land. These plants will include the 360,000 kw Tachien underground station immediately below the dam, the 480,000 kw Ching shan station, the 180,000 kw Kukuan under ground station now under construction, the existing Tienlun station to be enlarged to 106,000 kw, the 102,000 kw Maan station, and the 156,000 kw Shihkang station. According to the present schedule, by the end of 1967 all the four upstream plants will be constructed with an additional installed capacity of 636,500 kw, or 60% of the power program of the Tachia River will be developed.
After completion of the Tachia River development project, further supplemental power will become necessary to strengthen the hydro output. As coal reserve in Taiwan is rather meager and its price getting higher, it is envisaged that nuclear power, through improvement in design and manufacture, will in due course cut down its per kw capital investment and production cost sufficiently to be competitive with thermal power in Taiwan. Therefore, it is anticipated that TAIPOWER may build its first commercial nuclear power reactor sometime within the next decade.
In coordination with the increase in system capacity for each Development Program, improvements and extensions of its transmission and distribution network are simultaneously carried out by TAIPOWER. To accommodate the transmission of the increasing power from the Tachia River development, TAIPOWER plans to erect a new super high tension transmission line, thus insuring more reliable linkage between the principal power sources and the load centers.
Fertilizers
The chemical fertilizer industry has been playing an important role in Taiwan's economy, and positive effort has been exerted on its development. Before World War II, there were only three fertilizer factories on the island with a peak annual production of merely 33,858 metric tons as of 1939. These factories, badly damaged by Allied bombing during the war, were completely at a stand-still at the time of Taiwan's restoration. Presently, three fertilizer producing companies, namely, the Taiwan Fertilizer Company (TFC), the Kaohsiung Ammonium Sulphate Corporation (KASC) and the Hualien Nitrogen Fertilizer Company (HNFC), are operating a total of nine factories. Their production in 1958 is shown as follows:
The total production tonnage in 1958 was the highest ever reached, showing a 22% increase over the previous year. However, despite the fact that calcium cyanamide and fused phosphate could be produced at full capacity, production of both fell below the scheduled figures due to restrictions in the use of power supply during the dry season which lasted for three months from the beginning of the year. Four new projects, i.e., the Taiwan Fertilizer Company's nitrophosphate and urea projects, the Kaohsiung Ammonium Sulphate Corporation's first expansion project and the Hualien Nitrogen Fertilizer Company's nitrochalk project, are either completed or still in the stage of test operation. When all existing plants go into operation at their rated capacities, the chemical fertilizer production of the island will reach a new peak. The rated capacities of all plants are as follows:
According to the estimation of the JCRR, the total chemical fertilizer requirement of the island as of 1960 will amount to 786,000 metric tons, comprising of 497,000 metric tons of 20% nitrogenous fertilizer, 217,000 metric tons of 18% phosphatic fertilizer and 72,000 metric tons of 50% potash fertilizer. So there will still be a shortage even all these existing plants are operated at full capacity.
In order to make the island self-sufficient in nitrogenous fertilizers, the Kaohsiung Ammonium Sulphate Corporation is now pushing forward a second expansion plan from 50 metric tons to 150 metric tons ammonia per day under the second Four-Year Economic Development Plan beginning from 1957. As to the phosphatic fertilizer, the Taiwan Fertilizer Company is now expanding the annual production capacity of calcium superphosphate of its Factory No. 2 from the original 50,000 metric tons to 100, 000 metric tons.
Petroleum
The crude oil output of the Kaohsiung Refinery of Chinese Petroleum Corporation (CPC) in 1959 is estimated to be 24% higher than that of 1958.
During the period of 1958-1959, three major refining projects were completed:
Aviation Gasoline Manufacturing Project - The objective of this project is to utilize raw materials available from the existing catformer and TCC units to make aviation gasoline, a more valuable product having good prospect for export and the earning of foreign exchange. This project was completed in two stages:
The first stage called for the installation of equipment for making aviation gasoline base stocks from the catformer and TCC units, and equipment for aviation gasoline blending, storage and testing. After the installation of the named equipment in 1958, CPC started to make aviation gasoline with its base stocks and alkylate supplied from outside.
The second stage covered the installation of an alkylation unit for making alkyl ate from refinery gases and a sulfuric acid unit for making sulfuric acid for use as catalyst in the alkylation unit. Both these two units were completed in April 1959. About three hundred thousand barrels of aviation gasoline of several grades can now be made by CPC annually using its own alkylate and base stocks.
Sulfur Recovery Project - This project aims at recovering pure sulfur from the refinery gases which is at the same time purified upon removal of this undesirable constituent. This project consists of two sections - the first section or the amine desulfurization section was designed and constructed by CPC itself and the second section or the sulfur recovery section was procured from West Germany. Both sections were completed at the end of 1958. The unit is currently capable of producing ten tons of sulfur per day.
Aromatic Solvent Manufacturing Project - This project aiming at extracting valuable aromatic chemicals such as benzene and xylenes from reformed gasoline marks the beginning of petro-chemical manufacturing in Taiwan. The unit was designed and constructed by CPC and completed in June 1959. It is capable of manufacturing 1,000 tons of benzene and 5,000 tons of toluene annually, while xylenes will be extracted in a later stage. All these aromatic chemicals are the initial basic materials for many industrial products.
Aluminum
The total quantity of primary aluminum produced by Taiwan Aluminum Corporation was 8,577 M/T in 1958 and 3,061 M/T during the first half of 1959. The production decline in 1959 was caused, as in the case of fertilizers, by the prolonged power shortage during the dry season. A large portion of the aluminum produced was further fabricated by the Corporation into aluminum sheets, circles, foils, extrusions and various items of finished products. 4,516 M/T of sheets, circles, foils and 1,029 M/T of extrusions were produced in 1958 and 997 M/T of sheets, circles, foils and 365 M/T of extrusions during the first half of 1959.
Despite the production decline, the export tonnage of the Corporation's products was slightly on the increase. In 1958, the export comprised 2,215 M/T ingots, 15 M/T sheets and circles, 4.1 M/T foils, 425 M/T sashes and doors, and 4.4 M/T prefabricated housing materials. In the first half of 1959, 1,335 M/T ingots, 72 M/T sheets and circles, 2.6 M/T foils, 2.3 M/T extrusions, and 192 M/T sashes and doors were shipped abroad.
To boost the primary aluminum production from 8,000 M/T to 20,000 M/T a year, the Corporation continued to carry out its modernization and expansion project; which consists mainly in rebuilding the smelting pots into a 100,000-ampere line after the design of Pechiney Co., France, from whom a license was secured by the Corporation in 1958. A loan under the Development Loan Fund in the amount of US$1,350,000 was made avail able to the Corporation in June, 1959 to partly finance the procurement of various equipment and materials for the project which is scheduled to be completed about the end of 1961.
Taiwan Aluminum Corporation continued to expand its fabricating facilities during 1958-1959. Two new extrusion presses -- a Loewy-Hydropress 1,250-ton press and a Lom bard 3,000-ton press -- were installed during the first half of 1959. With these new presses, the Corporation can now supply extrusions in various shapes and sizes.
During the same period, the small aluminum fabricators on Taiwan also registered some progress in the development of new products, such as aluminum collapsible tubes for tooth paste and other materials. More aluminum was used by the local electric fan industry which has won an excellent reputation in our neighboring Asian countries.
Machinery Manufacturing Industry
The steel and machinery manufacturing industries, basic to all industries, have made remarkable progress since the First Four-Year Economic Development Plan was launched in 1953. During the past few years, the development of these industries has been directed toward specialization and production of precision machines by mass production methods, thus making possible the quantity production of electric fans, Watt hour meters, and motors.
The importation of new machine tools and inspection instruments, which replaced the old and worn-out ones, has also contributed greatly to the improvement of the quality of outputs.
The efforts made by these industries have brought about increases in production variety and quantity, improvement of quality, and reduction of production costs which makes the local products very competitive in foreign markets. In May, 1959, there are altogether 29 factories engaged in steel pressing work and they are equipped with 45 complete sets of electric steel pressing machines of a total capacity of 13,000 horsepower. These factories produce steel bars, round steel, steel sheets, light rails, spring steel etc., totalling about 20,000 metric tons per month. In addition to the above, there are 19 steel mills equipped with 37 steel furnaces with a total monthly capacity of about 20,000 metric tons. Export sales of local steel products began in 1957.
The Government, after implementing the now famous Land-to-the-Tiller Program, is now carrying out another epoch-making policy in the agricultural field: to increase farm products by mechanization. To meet the demand for farm implements, there are already 7 manufacturers engaged in producing them. Such implements are made specially adaptable to local conditions and they are very popular with the farmers.
The following table shows the output of the machinery manufacturing and steel industries during 1958:
Owing to the fact that the quality of local steel products has been greatly improved and their selling prices have been reduced to make them competitive in the world markets, the export sales of such items as steel bars, nails, bicycles, sprayers, power cables and wires have continuously increased in the past three years. The following shows the quantity and value of steel products exported in 1958:
Shipbuilding
In order to modernize and expand the shipbuilding industry in China, the Chinese Government through Taiwan Shipbuilding Corporation leased the shipyard of Keelung to Ingalls-Taiwan Shipbuilding and Dry Dock Co. (ITS) in February 1957. ITS has contract to build two 36,000 DWT bulk-oil tankers. The keel-laying of the first vessel, S.S. Faith, was performed on March 17, 1958. It was delivered and formally launched on March 6, 1959. Keel-laying of the second tanker has also been done and its launching is scheduled for February 1960.
Detailed specifications of the oil-tanker S.S. Faith are as follows:
S.S. Faith is the largest vessel that has ever been built in China.
Two passenger and cargo postal ferry boats with a gross tonnage of 86.8 tons each have been built for the Post Administration by the same Company. The construction of 52 fishing boats (5 steel and 47 wooden) has also been completed. The steel fishing boats are 32 meters long, 6 meters wide and 3 meters deep with a motor of 400 horsepower and gross tonnage of 175 tons. The wooden fishing boats range from 80 to 130 tons.
One ash barge for the Kaohsiung Thermal Power Station of Taiwan Power Company is being constructed by the Taiwan Machinery Manufacturing Corporation and the China Merchants Steam Navigation Company has contracted ITC for two 2500-ton class oil tankers.
The reconstruction of a floating crane, 110 meters long, 50 meters wide and 12 meters deep, has been completed by the Taiwan Machinery Manufacturing Corporation at the Caisson Dock of Keelung Harbor Bureau. The lifting capacity of the crane has increased from 50 tons to 130 tons. It is the largest of its kind in the Far East and will greatly facilitate the lifting of locomotives.
Under the ship replacement program of the Ministry of Communications the following vessels will be built in the near future: three 15,000-ton class dry cargo Diesel-driven ships of all steel construction, with a cruising range of about 16,000 miles and a cruising speed of 14 knots; three 12,000-ton class ocean-going dry cargo Diesel-driven ships with a cruising range of about 16,000 miles and a cruising speed of 14 knots; four 5,500-ton class steel dry cargo Diesel driven ships for ocean and coastal services, with cruising range at 10,000 miles and speed at 13.5 knots; a floating dry dock with a capacity of 3,000 tons (to be constructed by the Kaohsiung Harbor Bureau) financed by ICA and Taiwan Provincial Government.
Internal Combustion Engines and Vehicles
Striking progress in the manufacturing of internal combustion engines and motor vehicles was registered during the year from July 1, 1958 to June 30, 1959.
The private-owned Yue Loong Engineering Corporation manufactured two hundred each of the 5-HP, 6-HP and 10-HP diesel engines for fishing boats and farming implements. The 20-HP marine diesel engines were also on the program of production. In making such engines, more than ninety percent of the engine parts were manufactured by Yue Loong itself and only such parts as nozzles, plungers, chains and ball bearings had to be imported.
The Corporation is also the only manufacturer in Free China of jeeps, cars, utility vehicles and trucks. It has entered into technical cooperation agreements with the Willys-Overland Motor Corporation of USA and the Nissan Motor Co. of Japan. Five-ton trucks assembled with gasoline engines of 105-HP made completely at the plant began to come off the assembly line in March 1959 and 150 units were manufactured up to June 30, 1959. This opened a new page in the annals of the Chinese automobile industry.
Auto-parts made by this Corporation include pistons, piston rings, cylinder sleeves, leaf springs, gears, engine blocks, camshafts, connecting rods, bearings and bushings.
By the end of 1959, the Corporation is planning to complete the production of 2005-ton gasoline trucks, 150 heavy diesel buses, 156 utility vehicles, 50 units of 20-HP diesel engines and 200 small sedans. A plan has also been initiated to make 1,800 units of various types of vehicles in 1960.
Textiles
Among the industries developed on Taiwan during the past decade, the speed of the textile industry's development is most spectacular. This includes cotton, wool, bast fiber, synthetic fiber and silk knitting. At the time of the restoration of Taiwan, there were only 200,000 spindles and over 70% of cotton goods required by the people in Taiwan were imported from Japan or elsewhere. Almost all the woolen goods had to be imported. Now, the cotton industry has a total of 240,000 spindles and the number will exceed 300,000 in the very near future. Total production of cotton yarn in 1958 was 171,500 bales, an increase of about 20,000 bales over that of 1957.
Seven woolen mills are in operation with 15,094 spindles altogether. The annual production of woolen and worsted yarn was 525,275 kg in 1958, and that of various woolen fabrics amounted to 1,170,658 meters. The bast-fiber industry has 15,255 spindles with a productive capacity of 12,000,000 gunny sacks a year. The staple fiber spinning facilities have increased to more than 40,000 spindles and the production of synthetic fabrics reached 2,687,000 meters in 1958.
The China Artificial Fiber Corporation which began to produce rayon filament yarn in April, 1957, is the first artificial fiber manufacturing plant in Taiwan. The daily production of rayon yarn and staple fiber is 7.5 tons. In July, 1959, an additional machine was ordered by the Corporation. It is estimated that beginning from December, 1959, the production will be increased to 10 tons of rayon daily.
The production of textile products has more than met the local demand and the expansion of their sales in the overseas markets has become the most important problem to be tackled by the industry. In 1958, Taiwan textile factories organized a centralized agency, the Taiwan Textile Trading Company, to handle all work concerning exportation of textile goods. By November, 1958, orders totalling 1.6 million yards of ginham were received from U.S. and Hongkong importers and all of which have been delivered to the satisfaction of the buyers. During the period from January to June, 1959, orders for cloth received from U.S. and Hongkong firms amounted to 43 million yards. Negotiations are being made with a Hongkong firm for sale of another 3 million yards. These big orders indicate that the quality of local cotton fabrics equals to the international standards and their prices are competitive enough in the world market.
Soda and Chlorine
Taiwan Alkali Company operates two electrolytic chlorine and caustic soda plants, one using diaphragm cells and the other mercury cells. The annual production capacity of caustic soda is about 25,000 metric tons at present and in order to meet the ever-increasing demand on Taiwan the company's facilities are being expanded and the capacity will be increased to about 30,000 metric tons in the near future. The company is also installing additional equipment for producing ethylene dichloride, chlorinated paraffin, perchloro-ethylene, latex resin, pentachlorophenol and battery grade ammonium chloride, all scheduled for full scale operation by the summer of 1960. Other chlorine chemicals now being produced by the company are liquid chlorine, hydrochloric acid "HYCHLOR" highest bleaching powder with 70% available chlorine. The company is the sole producer of rayon grade caustic soda on Taiwan. Its industrial grade caustic soda is supplied to the local paper mills, aluminum plants, soap factories and textile mills and its liquid chlorine is supplied to the large paper mills, textile factories and water works in Taiwan. "HYCHLOR" high test bleach is supplied to the smaller plants of the same industries and for export. Hydrochloric acid largely goes to local gourmet powder factories, galvanizing plants and overseas.
Aside from Taiwan Alkali Co., there are altogether 15 smaller caustic soda works operating in Taiwan. They all use diaphragm cells.
There is at present a small Solvay plant which turns out about 3,000 metric tons of soda ash a year. A large soda ash plant with a daily capacity of 55 metric tons is under construction and expects to go into full operation by the end of 1959.
Paper and Pulp
Government encouragement and guidance boosted the paper industry in 1958. There are now altogether 51 factories in Taiwan producing different kinds of paper and equipped with 17 Fourdrinier machines, 91 Yankee paper machines and other paper making machines with a total daily capacity of 453.823 metric tons of paper and board and 90 metric tons of bagasse pulp. Limited local demand forces all factories to operate at about 50% of their capacity. Therefore, the paper industry must look for markets overseas.
The Government as well as the producers themselves have taken actual steps in that direction. The Government allows paper manufacturers to retain 100% of the foreign exchange earned from exports to import the necessary equipment and raw materials and, at the same time, allocates them the essential raw materials, such as bagasse, fluid chlorine and pine wood at special prices in order to reduce their costs. On the other hand, the members of the Paper Manufacturers Association organized in March 1958 a Paper Products Export Promotion Group with a view to exploring markets abroad. The prospects of increasing paper exports look very promising.
In 1958, there were 10 factories that have completed expansion of equipment, with a total addition of four Fourdrinier machines, four Yankee paper machines, three board making machines and an increased capacity of 90 metric tons of various paper products per day.
Here is a glance at the paper products of 1958-1959:
A comparison of the value of paper products exported in 1958 with that of the first six months of 1959 as shown in the above tables indicates clearly the remarkable progress made by Taiwan paper producers. With improved quality and lower production costs, the local paper industry is entitled to having good prospects in overseas markets.
Cement
In 1946, the Taiwan Cement Company was the only cement producer on this island, and the total production from its three plants was less than 100,000 metric tons. In 1950, their production reached 331,976 metric tons which exceeded the peak production of 303,438 metric tons ever reached during the period of Japanese occupation. In meeting the ever-increasing demand for cement after industrial programs began to multiply, TCC continued to expand after it was sold to private interests in 1954 under the "Land-to-the-Tiller" Program. In 1958, its output totalled 793,926 metric tons, or 241,066 metric tons over that of 1957. The quality of cement has also improved by adopting a scientific quality control system which was introduced in 1958. According to a recent test, the pressure strength of TCC's cement per one square inch on the 28th day after its mixing with other materials is 5,580 pounds, or 2,080 pounds higher than the ASTM standard.
Chia Hsin Cement Company was established with private capital and partly financed with U.S. Aid loans. Production started in September, 1957. During 1958, a total of 147,249 metric tons was produced against its productive capacity of 150,000 metric tons and the production for the first six months of 1959 has reached 77,382 metric tons. Chia Hsin is now procuring another unit of machinery which also has an annual productive capacity of 150,000 metric tons. The new unit is scheduled to start operations in October, 1960.
Another cement factory of considerable size is being built by the Asia Cement Company and the installation of machinery will be completed about the middle of 1960. The yearly productive capacity of this new factory will be 150,000 metric tons.
There are altogether twelve cement factories operating on this island and their combined production has reached 1,014,739 metric tons in 1958 and 541,056 metric tons during the first half of 1959. Although the production of cement has increased more than ten times during the past twelve years, the supply is still insufficient to meet domestic demand and export opportunities. The cement industry is therefore still striving to expand. It is estimated that before the Second Economic Development Plan ends in 1960, the total production of the industry will amount to 1,500,000 metric tons a year.
Glass
The forty-odd glass-manufacturing factories in Taiwan produce 43,515 metric tons of glass products annually, including bottles; tubes, cups, electric bulbs, injection tubes etc. Only wine bottles, bulbs and window glass are now being produced by mechanized processes.
The Hsinchu Plate Glass Works, the biggest glass manufacturer in Taiwan, is producing 180,000 standard cases of window glass annually. The thickness of their product ranges from 1 mm to 8 mm.
To meet the heavy demands of both local and overseas markets, Hsinchu Plate Glass Works is planning to construct a second plant, scheduled to be completed and put into operation in January, 1960. When the second plant joins the first in operation, the annual production of HWGW will be increased to 380,000 standard cases.
HWGW is also planning to construct a ground and polished glass plant for producing tempered glass, paired glass, laminated safety glass, etc. This plant is to be completed ant put into operation in 1961.
Large quantity of local glass products has exported to the Ryukyu Islands, Republic of Korea, Canada, the United States, and countries in Southeast Asia.
Plastics and Resins
With a brief history of only ten years, the plastic industry has witnessed in itself a very striking development in 1958-1959. There are altogether 150 odd factories on Taiwan making products ranging from daily used articles to parts required by industries making bicycles, electric wires and fans, radio sets, etc. Within the last decade, the quality of local plastic products has been continuously improved, thus making most, if not all, of them comparable to products of other countries.
Products such as sheet, buttons, bags, toys etc. made of polyvinyl chloride were exported in 1958 to the Republic of Korea, Thailand, Hongkong and other countries in Southeast Asia, with a total export value of US$250,000. Their fine quality and innovated designs have made most of these products very popular with foreign buyers.
Of all the new industries in Taiwan, plastic industry has been the most remarkable for its swift development and accelerated expansion. Their total volume of sales in 1958 amounted to NT$140,000,000.
Plywood and Artificial Wood Board
The first plywood manufacturing factory in Taiwan was established in 1938. Up to the end of 1958, altogether eight factories, with a combined annual productive capacity of 20,500 square meters per 8 hours, have been established. The actual production in 1956 and 1957 was below 5 million square meters each year but in 1958, it almost doubled, reaching 9,490,000 square meters. Domestic sales of plywood in 1958 amounted to NT$84,222,000 while the sales were only NT$62,403,000 in 1957. The export sales in 1958 reached US$1,909,000, almost five times of the export value (US$411,000) in 1957. Many new projects are under way and the productive capacity will be further increased in the near future.
Philippine Lauan logs have to be imported for plywood manufacturing although small lots of some kinds of local wood are also usable, especially for tea case board production. However, through the export of finished plywood products, sufficient foreign exchange has been earned for the import of necessary raw materials.
There are seven other plants engaged in the manufacture of artificial wood board, bagasse insulation board and resin bound chip board making use of bagasse, saw dust and other forms of wood-waste, with an annual output of 4,560,000 square meters, all kinds of products included. One of these plants is the Changhua Plant of the Taiwan Sugar Corporation which produces insulation board and two-side smooth hardboard. This plant is the biggest of its kind in the Far East and also the first to make such high grade hardboard from bagasse in the world. They use the so-called combination process in which the wet board formed is first dried into insulation board which can be sold as such or further processed by compressing it under high temperature and high pressure into two-side smooth high grade hardboard. Three other small plants are also producing board from bagasse and their products are one side smooth and one side rough.
Manufacturing resin bound chipboard, the Homodurawood Co's plant was established in 1958 and the plants of New Era Co. and TSC are being constructed at Fengyuan and Kaohsiung respectively. Both are scheduled to be completed in 1960. Waste wood is the raw material for Homodurawood plant and New Era plant while the shaving board plant of TSC will use bagasse. These three new plants will further enlarge the supply of artificial wood products to meet the demand of the construction industry and for export.
Electrical Appliances Industry
To meet the ever-increasing demand of both the local and foreign markets, the manufacturers of electrical equipment and appliances in Taiwan made the most spectacular progress toward the increase of production in 1958. They have spared no efforts in improving the quality of their products by cooperating with Japanese and American manufacturers of world renown to produce new and quality products. Up to the end of June, 1959, eight technical cooperation contracts have been signed by local manufacturers with four Japanese and one American firms for improving the quality of such products as electrometers, bulbs, flourescent lamps, switches for electric fans and motors, parts for radio sets, etc.
The items and quantity of the main electric products manufactured in 1958 are tabulated as follows:
Electric Fan 91,605 units
Electric Bulb 7,868,070 pcs.
Dry battery 886,507 doz.
Dynamo set 35,680 sets
Electric Wire 18,125,000 meters
Motor 6,632 hp
Flourescent lamp 298,000 pcs.
Transformer 35,391 kva
Watt Hour Meter 140,864 pcs.
Insulating plate 1,410,180 pcs.
In 1958, the following electrical products were exported to Thailand, Republic of Korea, Singapore, Philippine Islands, Macao, the Ryukyu Islands, Laos, Iraq, Pakistan, Malaya and Vietnam:
Electric fan 4,431 units
Flourescent lamp 282,226 pcs.
Radio set 1,000 sets
Dry battery 6,000 doz.
Electrometer 100 sets
Conclusion
Whether the view, in 1958-59, is directed toward one particular industry in Taiwan or toward the panorama of the whole island's various industries, we can point with pride to the production figures and quality improvement.
Perhaps the most remarkable phenomenon is the ever greater and wider overseas market that has been opening up to Free China's industrial output. Traditionally an agricultural region, Taiwan is now also to be reckoned as an important and popular industrial supplier in Asia. And as long as peace reigns in this part of the world, any investor or prospective investor in Free China's industries will find his profits safe as well as adequate, and more channels of promising investments will open up year after year.