Steel industry is the base of economic development. Its relevant industries are quite wide and it may drive the whole development of its upper/down streams, especially coated steel products with excellent character of corrosion resistance to lead the market requests from traditional construction industry to home appliance, automobiles, and further extending to information and electronic industries. The local capacity of galvanized steel products had been sharply one time increased in 2000. Problems of how to digest the products keenly exist and the local environment in coated industry faces to be re-organized. Meanwhile under the impact of Asian financial storm, suppliers of hot rolled coils had been altered from the originally three companies to the exclusive one monopolized by China Steel, after An Feng¡¦s bankruptcy and Yieh Loong¡¦s emergence by China Steel. In addition, due to being attracted by the excellent environments and offered conditions from the cross-strait, the corporations of upper/down streams have been moving out. Thus the rolling/coating manufacturers of middle steam locally are forced to face the problems of raw materials being monopolized, capacity excess and local customers moving out. The study takes Sheng Yu Steel Co., Ltd. as the example to research how the coating steel manufacturer using the resources in hand to make the appropriate strategies in view of the great change of steel industry. Facing the internal and external influences, local coating steel manufacturers have to make efforts together to breakthrough the current barriers and pursue the future developments. Government should also push hard on economic development and speed up public construction to stimulate the consumption and lead the growth of economic prosperity. The suggestions to the leader of steel industry, China Steel, --- being the only national integrated steel refinery, under the condition of exclusively monopolizing raw materials, China Steel should regard itself as the national steel mill and consider the rises or falls of the whole steel industry in Taiwan, in addition to pursue its own benefits, but also to consider the existing space and international competition for the down-steam customers, in order to avoid the customers¡¦ bankruptcies or moving out due to the poor operation surrounding. The suggestions to the steel industry and the studied company are ¡V 1. To control the supply sources of raw materials, to avoid being controlled by the only supplier. 2. To emerge or make alliance with the local dealers of the same line, to extend business scope and lower the competitive pressure. 3. To develop high-added value products and practical application of new products, to replace imported products. 4. To strengthen R&D, to promote the abilities of manufacture process and products application.