(Author: Judy Lin, Chief Editor, LEDinside)

Chinese LED package manufacturer MLS signed a strategic distribution partnership agreement with Taiwanese LED luminaire manufacturer YACG last Sunday at Denwell restaurant, Taipei, Taiwan.

“This is the first time in two decades that such a significant marketing and branding event has taken place in Taiwan’s lighting industry,” said MLS General Manager Lawrence Lin.

Lawerence Lin, General Manager of MLS (or also known as Forest Lighting) (left) shaking hands with Steven Lin, Chairman of YACG (right). (All photos courtesy of LEDinside)

The Chinese LED manufacturer set up its Taiwan branch just two years ago, and its decision to pair up with YACG, a 20 year-old veteran in the local lighting industry, aims to tap into the latter’s wide distribution network in the mechanical, electrical and plumbing service (MEP) industry in Taiwan, added Lin.

YACG and its subsidiary Kotas combined have 2,000 clients in the MEP industry. These clients along with lighting fixture retailers, and lighting designer clients the three groups comprise 70% of the company’s LED luminaire revenue, while the remaining 30% is from direct sales to consumers.

David Lin the CEO of YACG during his presentation at the distribution partnership agreement signing ceremony with MLS.

“The company is also looking into ESCO models as a new source of revenue in the future”, said David Lin the CEO of YACG during a presentation at the partnership agreement signing ceremony.

According to a source from YACG familiar with the matter, the partnership covers the distribution of Forest Lighting’s general lighting products such as LED T5 tube lights, LED T8 tube lights and LED bulbs to the Taiwanese company’s client networks. Forest Lighting products sold in Taiwan will all use Epistar LED chips, said MLS General Manager Lawrence Lin.

YACG LED lighting fixtures can already be found in numerous large scale lighting projects in Taiwan, including a few Sogo franchise shopping malls in Taipei, Taiwan, and SM Group shopping mall franchise lighting projects in the Philippines, said David Lin.

Lawerence Lin, General Manager of MLS talks about the benefits of the partnership and general conditions of the LED lighting market.

Following the partnership agreement with the world’s number nine ranking LED package manufacturer, YACG aims to accumulate a revenue of NT $4 billion (US $124.21 million) in the next five years, which is equivalent to setting annual revenue target of NT $1 billion to NT$ 1.5 billion, said Lawrence Lin.

“This is a pretty high revenue target if you consider Taiwan’s leading lighting brand China Electric Brand’s traditional and LED luminaires annual revenue is but NT $2 billion,” he added.

Steven Lin, Chairman of YACG is also the former Chairman of Taiwan's Lighting Fixture Export Association.

The island nation’s lighting market value, which covers both conventional and LED lighting, is about US $5.4 billion, according to statistics compiled in 2015. LED lighting market penetration has climbed up steadily over the past years, and currently has reached about 20% to 30%, said Lawrence Lin.

Taiwan is just the starting point for YACG and Forest Lighting’s long term partnership, as the two companies hope close collaboration will open up potential distribution partnership opportunities in Southeast Asia, U.S., and EU markets.