M&A is a pathway for enterprises to achieve rapid growth.

I have worked in the adhesive industry for 30 years, experiencing entrepreneurship, corporate development, listing, and M&A—giving me comprehensive insight into this sector. I authored the book *Stories from the Adhesive Industry: Observations and Experiences over 30 Years*, which includes an article specifically examining how Germany’s Henkel became the world’s top adhesive company. Before the 1980s, Henkel was relatively unknown in the adhesive field. In 1995, it acquired German company Teroson; in 1997, it acquired U.S.-based Loctite. These acquisitions secured Henkel’s international presence in engineering adhesives and sealants, propelling it to become the world’s largest adhesive manufacturer. In 2008, Henkel further acquired the adhesive business of U.S. National Starch, decisively outpacing competitors and cementing its position as global leader. Since 2010, U.S. company H.B. Fuller has also accelerated its M&A strategy. In 2011, it acquired Swiss firm Forbo—eliminating a strong competitor. In June 2014, H.B. Fuller signed an acquisition agreement with Beijing TianShan Chemical Co., Ltd., aiming to expand into new markets and enter the engineering adhesive sector. In 2016, it acquired U.S. Cyberbond; in 2017, it acquired U.S. Royal Adhesives & Sealants—further strengthening its position in engineering adhesives. Through this series of acquisitions, H.B. Fuller has become the world’s second-largest adhesive company. Both Henkel and H.B. Fuller are century-old enterprises that continue pursuing growth through M&A and innovation—successfully securing the No. 1 and No. 2 global positions in the adhesive industry via strategic acquisitions and integration. As one of the founders of Beijing TianShan, since 2013 I have led and participated in the entire process of H.B. Fuller’s acquisition of Beijing TianShan—including negotiations, due diligence, closing, and post-merger integration—learning extensively over these five-plus years. M&A is purpose-driven expansion: it may aim to eliminate competitors or to enter new markets. To strengthen competitive advantages, M&A strategy is indispensable—but many M&As fail.

Several well-known factories have successively announced dissolution and closure—what has brought them down?

ShunDa Electric Components (Shenzhen) Co., Ltd. announced that, citing 'long-term losses with no prospect of reversal and inability to sustain operations', it would fully suspend production starting August 12 and simultaneously initiate employee termination procedures. Why are multiple factories collapsing one after another? As shown in the notices above, these failing enterprises span multiple sectors—including semiconductor equipment, electric components, and electronic parts manufacturing. Among them are industry newcomers like Foshan Gaide Electric Co., Ltd., founded only in 2017; long-established manufacturers such as ShunDa Electric Components—a 37-year-old Hong Kong-invested manufacturing giant; and even large-scale foreign-invested factories widely regarded as benchmarks of Dongguan manufacturing, such as Tianhong Technology, which employed over 10,000 people. The successive announcements of closure and dissolution by these factories and manufacturing enterprises reflect major challenges currently confronting the global supply chain and manufacturing sector—namely, shrinking demand caused by unstable trade environments; shifting customer demographics driven by evolving online and offline sales models; and intensifying cash-flow pressure exacerbated by rising labor costs. 1. Pressure from Trump-era tariffs Regarding instability in the trade environment, the most prominent factor this year has undoubtedly been Trump-era tariffs. As previously noted in earlier articles, many overseas importers and retailers—upon implementation of Trump’s tariffs—imposed unacceptable demands on domestic factories: either jointly bearing tariff costs or absorbing them entirely through price reductions. At the time, Walmart, a global retail giant, was even summoned by China’s Ministry of Commerce for consultation. Although tariff tensions have somewhat eased following negotiations between Chinese and U.S. delegations, the current tariff levels remain significantly elevated compared to pre-tariff levels—reaching as high as 30% (20% fentanyl-related tariffs plus 10% reciprocal tariffs). Moreover, tariffs on steel, aluminum, and related derivatives stand at a staggering 50%. Within the supply chain, factories are characterized primarily by low-margin, high-volume operations—i.e., generally low gross profit margins. Under such conditions, already slim profits are further eroded by tariffs, inevitably pushing many factories beyond sustainability. 2. Disruption from shifts in online/offline retail models Beyond tariff pressures, transformations in online and offline shopping models are also severely impacting numerous factories. Admittedly, despite the growing dominance of e-commerce both domestically and internationally—and corresponding shifts in consumer purchasing behavior—overall demand persists. Yet for many manufacturing enterprises and factories reliant on single-channel distribution—particularly those heavily dependent on export-oriented business—these changes effectively sever their primary sales lifelines.

Questions remain about H.B. Fuller's closure of its Paducah site

Aug 7, 2026

H.B. Fuller will close its Paducah, Kentucky adhesive plant by early 2027, cutting 100 jobs following a strategic review of its North American manufacturing network.

WPSD Local 6

2026-05-26

Activist Ancora Pushes H.B. Fuller to Drop Bid for UK’s AMS

2026-05-26

Cleveland-based activist Ancora pushes H.B. Fuller to drop bid for U.K. firm

2026-05-26

Ancora Urges H.B. Fuller to Abandon Pursuit of Advanced Medical Solutions Acquisition

2026-05-28

H.B. Fuller Announces New Coating to Improve Food Packaging Recyclability

2026-05-30

Activist Investor Ancora Urges HB Fuller to Abandon UK AMS Acquisition Bid