Dongguan, China
www.taihopaint.com

PRIVATE COMPANY; YEAR ESTABLISHED: 1994

REVENUE: $189 million

MARKETS SERVED:
Wood paints; Industrial paints; Decorative paints

KEY EXECUTIVES:
Chen Ho Sheng, chairman; Chang Cheng Hsien, GM; Tochiaki Ogasawara, president; Huang Jung Chi, chief of facility officer; Yeh Tzu Shen, vice GM; Chen Chun Hua, technical director.

TAIHO PAINT is a leading brand in the global Chinese market. TAIHO PAINT is engaged in the production, sales and R&D of coating products. The main products are wooden paint, architectural coatings and related supporting colorants, diluents, solvent, resins and other chemical products and supporting auxiliary materials, providing excellent painting effect and color application experience for consumers, especially in furniture coatings and home decoration wood coatings.

For 2022, industrial coatings sales were 72.5% of TAIHO PAINT’s revenue, with architectural another 22%. Outside of Dongguan, Taiho Paint has two facilities in Taiwan and operations in Shanghai, Chengdu, and Japan, and overall, has 1,483 employees.
TAIHO PAINT’s overall turnover rose 5%, but actual profits fell 2.3%. It is especially affected by raw materials. In the second half of the first half of the year, crude oil and petroleum began to show a downward trend, but due to the increase in comprehensive costs (labor costs, freight costs, fuel costs, solvent packaging materials, etc.), the price of raw materials did not fall at all, and because of the depreciation of the yen, raw material procurement prices increased.

In the first half of the year, product management basically maintained the original sales price, although there was a price increase in June.

This year, due to the depreciation of the yen, lack of raw material supply, rising freight costs and other factors, it is estimated that production costs will continue to show an upward trend. Next, it is expected that the profit effect of the price increase introduced in June last year, as well as the efforts in the research and development, promotion and sales strategy of water-based metal primer, water-based waterproof coating, heat-insulating coating for building exterior walls, heat-insulating road coating, and civil construction coatings, will bring benefits.

As for the outlook for 2024, mainly due to the insufficient supply of raw materials and the overall waste in the production process, it is estimated that the overall situation this year will be similar to last year. Although there are discussions and plans to start raw material replacement, there is a time transition period between the plan and the field operation, and the research and development progress will be delayed.

Of course, TAIHO PAINT will actively try to overcome the practical problems the company faces, and the review of insufficient supply of raw materials and alternative raw materials is also the scope of the BCP (Business Continuity Plan) corporate sustainable development plan, and naturally will continue to be implemented.

One highlight is the successful launch and sale of Gamelon single-component water-based metallic paint. The main performance advantage of the product is that it can dry quickly and can do matting; the weather resistance can be comparable to polyurethane paint. Mainly used in the field of civil machinery, equipment, appliances, it is highly praised by customers. In addition, TAIHO PAINT is also developing automotive interior and exterior trim paint and bathroom plastic paint.