During the Han dynasty, under Chinese rule, the invention of papermaking came to fruition, as described in Tiangong Kaiwu (The Exploitation of the Works of Nature). This marked an important moment in human history, shaping modern life with paper's many uses. From packaging and containers for food, to recording information and cleaning products, paper became a daily necessity. Within the Shilin District specifically, the establishment of the first paper mill took place in 1918, during Japanese rule. This mill was known as “Taiwan Paper K.K.” due to the influence of Japanese merchants. The Shilin Paper Factory greatly shaped the landscape of Shilin, eventually the nearby Fudeyang Canal was even diverted towards this mill for industrial use.

The chimney stacks of this mill served as a beacon to merchants traveling by sea, signaling their arrival to Shilin District.

The 1950s were highlighted with many crucial steps and achievements, including a share of exports from 1957 to 1966. The growth of exports throughout Taiwan's Japanese colonial time had substantially raised the GDP, which laid the groundwork for Taiwan's rapid development in the early 1960s (Tsong-Min, 2017). This continuous move towards industrialization and modernization of farming equipment caused underemployment in agriculture, resulting in a surplus of laborers in the agricultural sector. This caused higher rates of poverty in farm families and a low standard of living for laborers, who accepted the low paying wages offered in the industrial market. The export-oriented approach significantly influenced the development of various industries within Taiwan, particularly in electronics and basic metals.

In turn, this focus on export-orientated manufacturing played a role in the incentivization of economic growth over the preservation of the past agricultural norms of the time.

The industry faced overproduction problems and domestic market challenges but got on its feet after entrepreneurial approaches focused on the increase of exports. From the famous “golden decade” of industrial paper of the late 1960s to the private paper industries' expansion in the 1980-90s, the industry achieved exponential growth in production and improved standards. But, despite that, there were harder times for Taiwan after joining the World Trade Organization in 2002, one instance being the increase of international competition.

To address these challenges, the industry adapted its business approaches and adopted environmental-friendly manufacturing techniques, thus becoming consistent with Taiwan's purpose of fostering environmental sustainability and the idea of circular economy. Similar to many other paper factories in the Taiwanese paper industry, the Shilin Paper Factory has continuously worked to keep up with the changing market dynamics and has continued on the path to modernization.

Source: Chu, P. C. (2019). The Evolution of the Taiwanese Paper Industry: A Historical Perspective. Journal of Papermaking History, 14(3), 45-67.