After the closing down of the corporation, Nakagawa remained in Nagura to continue the land reclamation with about eighty Japanese Main Islanders who were dismissed by the corporation (Hattori 1963, 132-133).

In the meantime, the Japanese government attempted to develop a sugar industry in colonial Taiwan. When Kodama Gentarō was appointed the Governor General of Taiwan in 1898, the colonial government stressed developing industries and promoting the economic independence of the colony. The sugar industry was considered one of Taiwan's major industries. With the strong support of Governor Kodama, the Taiwan Sugar Industry Corporation (Taiwan seitō kabushiki gaisha 台湾製糖株式会社) was founded in 1900 (Shibusawa Sei’en kinen zaidan 1956, 251-254).

In 1901, Nakagawa went to Taiwan in order to pass on the machinery used by the Yaeyama Sugar Industry Corporation to the Taiwan Sugar Industry Corporation. Thereafter Nakagawa did not return to Yaeyama, but began another sugar enterprise in Tainan (台南). The factory was established in 1902, but closed within three years (Hattori 1963, 143).