News / Taiwan / economic_daily
Taiwanese Paper Giants Pivot to Green Energy and High-Margin Products
Process Industries · Pulp & Paper · economic_daily · 2026-09-01
1904
Major Taiwanese paper manufacturers, including Cheng Loong and YFY, are transforming their business models by adopting green energy and AI to boost margins.
What Happened
Energy Transition Strategy: Cheng Loong and YFY are investing heavily in biomass cogeneration systems, converting wastewater into biogas to increase energy self-sufficiency. YFY is also developing island-mode operations to ensure production continuity during power grid disruptions.
Product Portfolio Optimization: Paper manufacturers like YFY's subsidiary, Chung Hwa Pulp, are shifting toward high-margin products such as fluorine-free greaseproof paper and optical glass lining paper. These high-value items are increasingly contributing to revenue, helping to mitigate the impact of low-margin traditional paper products.
AI and Digital Transformation: Long Chen Paper has prioritized AI integration as a core operational strategy for the next three years. By digitizing manufacturing processes and expanding overseas, the company aims to enhance production efficiency and broaden its market reach.
Profitability Outlook: By reducing energy costs through green initiatives and focusing on product differentiation, these firms are moving away from traditional commodity price cycles. The industry expects these strategic shifts to improve overall profitability and operational resilience in the long term.