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Fluorescent bulb maker builds on nation's desire for green environment
By Marilyn Miller Beacon Journal business writer
Published on Saturday, Oct 20, 2007
When Ellis Yan walks into a room, he draws the curtains open to bring in the natural light. ''I like natural light . . . daylight makes people feel good.''
As the founder, president and chief executive of Technical Consumer Products (TCP) in Aurora, Yan is passionate about lighting.
His company has expanded to a bigger facility to keep up with demand for light bulbs.
A 154,000-square-foot corporate headquarters was completed this month after construction began in June 2006. The previous facility, behind the new building, was 100,000 square feet.
The new facility features a mixture of lighting and color throughout the building. Units in the ceiling tile in the office areas bring in natural light, reducing the company's energy use.
There are two stories of office space, warehousing, a distribution center, product-testing labs and customer-service call center.
TCP employs 205 in Aurora and 13,000 in China at four plants. As many as 40 jobs are expected to be added to the Aurora plant over the next year. Because of the increased demand for its products, more packaging will be done in the United States to cut shipping time.
In the future, the new building could be expanded to 360,000 square feet of combined office and distribution space and could house as many as 350 employees.
The privately owned company, which specializes in compact fluorescent lamps (CFLs), has increased sales five times the amount sold in 2000, and last year sales reached $152 million, Yan said.
''For the first time since the invention of the light bulb, homeowners are changing a century-old buying habit of using incandescent light bulbs,'' said Yan, 53. ''More people are seeing the immediate benefits of making the switch to CFLs.''
Three kinds of bulbs
TCP makes three types of compact fluorescent lights soft lights for bedrooms and living rooms; bright lights for kitchens and bathrooms; and daylight bulbs for reading. ''Light should match the environment,'' Yan said.
TCP's strategy has been to respond to an increase in sales due to the ''green movement'' to use environmentally friendly and energy-efficient materials.
Yan said the company is trying to remove the perception that if you want to go green, you have to sacrifice your lifestyle.
He applauded the U.S. House and Senate for working on legislation that would change lighting standards and lead to the phasing out of the conventional light bulb by the year 2014.
Yan will help spread his concept to city officials in November at the U.S. Conference of Mayors in Seattle. He will discuss climate protection and conservation possibilities for city buildings.
The company boasts its CFLs use 75 percent less energy and last an average of 10 times longer than incandescent light bulbs. They say consumers can expect to save $30 to $108 over the life of a lamp and reduce their carbon dioxide emissions by more than 450 pounds.
The products are available in the United States under a variety of name brands and private labels and from other lighting manufacturers, including n:vision at the Home Depot and Great Value at Wal-Mart.
Family owned
TCP is a family-owned business. Yan's brother, Solomon Yan, is president of TCP China.
TCP produces 800,000 light bulbs a day and plans to exceed 1 million a day by the end of 2007.
Ellis Yan travels to China every other week. Yan said the company also uses high-tech services for direct communication to China through video conferences. ''Now all we need is a faster airplane,'' he said of 14- to 15-hour flights to China, with a change of planes in Chicago.
Yan, 53, is married and has one daughter. The family resides in Bainbridge near Cleveland.
Born in China, Ellis Yan came to America at age 20 to live with his aunt and uncle in Cleveland. He attended Cleveland State University, where he earned a degree in accounting that he never used.
His first job after graduating from college was as a computer programmer.
In 1986, he purchased used equipment, exported it to China and began making halogen lighting products. In 1993, TCP was founded.
As his business grew, he began to focus on the energy-efficient lamps as a way to differentiate his operation from the major light manufacturing companies.
It caught on. TCP says it holds 70 percent of the compact fluorescent lamp market in the United States.
Besides controlling manufacturing, distribution and testing, TCP owns glass and circuit-board factories in China.
''Our biggest advantage is that we can do it all and in the shortest amount of time, from research and development to manufacturing, to distribution, to servicing our customers,'' said Joseph Colant, vice president of sales and marketing.
Colant said product testing is done in Aurora. The company plans to open another certified testing lab in Shanghai.
''Consumer awareness is spreading with media attention,'' Colant said, referring to an Oprah Winfrey television show about global warming two years ago that included a segment about energy-efficient lamps.
''When Oprah held up one of the TCP products, people rushed out and bought them up off the shelves,'' Colant said.
National recognition
The CFLs have also been featured on Today, Good Morning America, the NBC Nightly News, Vanity Fair magazine and Popular Mechanics.
TCP has also been featured as landmark buildings change their lighting and project the savings: New York Public Library, with a projected annual savings of $202,000; Penn Station, with $270,000 in savings; and Playhouse Square in Cleveland, which will save $220 a month. All Marriott Hotels use TCP products and have been under contract with the company for seven years.
Yan said his company is trying to dispel fears about the mercury in CFLs. He said all compact fluorescent lamps contain small amounts of mercury to glow and give light. ''Even with the trace amounts of mercury, which is roughly equivalent to the tip of a ballpoint pen, they should be recycled,'' he said.
''There is more mercury in tooth fillings than in the light bulb,'' said Noel Lavezzi, director of corporate communications, who visited the recycling firm the company uses, Veolia Environmental Services, in Lombard, Ill.
Focus on fitness
As part of his business philosophy, Yan is dedicated to fitness and wellness, running as many as eight miles a day. TCP has a full-service cafeteria at the new facility with meals prepared by the company chef. The cost is under $5. There is also a take-home dinner program.
Not far from the lunch area is a contemporary fitness center with treadmills and exercise bikes. The cardio workout room is available to all employees and open throughout the day and evening.
Marilyn Miller can be reached at 330-996-3098 or 800-777-7232 or mmiller@thebeaconjournal.com.
When Ellis Yan walks into a room, he draws the curtains open to bring in the natural light. ''I like natural light . . . daylight makes people feel good.''
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