Yung Chi Paint (YCP) (TWSE: 1726 TT) is Taiwan’s largest paint and coating maker with domestic market share leadership of 30% and 50% in architecture and heavy duty paint respectively under its own “Rainbow” brand. YCP is established in 1951 in the industrial city of Kaohsiung by the founder Chang Ten-yung. Through technical cooperation with UK’s Berger Jenson and Nicholson, Japan’s Kobe Paints, and US Ameron, YCP is equipped with advanced technology and facilities and strong internal R&D ability, offering marine coating, coil coating, anti-corrosion coating, fire-retardant coating and other heavy duty paint and coatings. YCP also provides painting contractor services with multi-year contracts from the Formosa Group to paint anti-corrosion coating at the giant Mailiao Petrochemical Complex. Overseas operations in China (Kunshan) and Vietnam (Don Nhai) are scaling up while warming up in Malaysia and US. When the founder passed away in 2006, giant PPG (PPG US, MV $29.8bn) and Formosa Plastics (1301 TT, MV $14.5bn) offered to buy over 51% of the company but were rejected by the controlling family.
What Makes It a Wide-Moat Business?
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