Hwa Seng Paper Advances into High-Value Materials: Optical Glass Interleaving Paper Ramps Up Production This Year

Hwa Seng Paper has been actively transforming its business in recent years, expanding into the high-value materials market. Chairman Huang Kunxiong stated that after more than 10 years of research and development on optoelectronic materials, the company has now entered mass production, with these products expected to gradually contribute to operations. General Manager Chen Ruihe noted that the optical glass interleaving paper began small-scale trial production last year and is now ramping up shipments in 2024 as customer certifications increase. Currently, it accounts for approximately 3% of total revenue.

Hwa Seng Paper held its annual shareholders' meeting today. Huang emphasized that the company's strategic direction of developing its forestry, pulp, and paper divisions independently while enabling synergies—announced last year—has begun to yield results, with optoelectronic materials being a key component.

Huang pointed out that these products are primarily used in the panel industry and must meet stringent technical requirements such as low static, lint-free performance, and high cleanliness, making the technological barrier very high. Previously, this market was dominated by a few international suppliers. Hwa Seng has invested over a decade in R&D to break into this space.

In an interview, Chen explained that the optical glass interleaving paper is used to protect glass panels during transportation and manufacturing processes. Trial production began last year, and with increasing customer certifications in 2024, volume shipments are now underway. The primary customers are concentrated in Japan and South Korea. He added that total R&D expenditure has reached NT$200–300 million, with over NT$100 million dedicated specifically to the optical glass interleaving paper.

Chen noted that while the product currently contributes about 3% to revenue, there is potential to increase this to around 5%. However, given the relatively stable global panel market size, the product, while enhancing value and profitability, is unlikely to become a primary revenue driver. Instead, the development of this product is seen as a strategic step to build core competencies in specialty materials. Success in high-barrier specialty papers could open doors to electronic materials and other high-end industrial paper markets in the future.

Beyond optical glass interleaving paper, Hwa Seng is also advancing development in wood pulp spun yarn, barrier materials, and non-plastic food packaging. Chairman Huang highlighted that the global materials industry is shifting from petrochemical-based to low-carbon, recyclable, and renewable biomaterials. Hwa Seng aims to transform from a traditional paper manufacturer into a leading biomaterials supplier, expanding its portfolio of high-value products. (Edited by Chang Chun-Mao) 1150616