J-Star Holding Co., Ltd. (Nasdaq: YMAT) Initiates Strategic Shift Away from China to Strengthen U.S. Operations
TAICHUNG CITY, Taiwan, Jan. 06, 2026 (GLOBE NEWSWIRE) — J-Star Holding Co., Ltd. (NASDAQ: YMAT), a key player in the carbon fiber and composite solutions market, has unveiled a strategic initiative to exit its operations in China. This move focuses on reallocating resources towards enhancing expansion efforts in the United States, thereby underpinning growth through automation and innovation.
Reasons Behind the Strategic Realignment
This decision is largely influenced by the increasing geopolitical uncertainties and changing regulatory environments in China. J-Star's action aligns with a broader trend observed among multinational companies, such as Canon and Mercedes-Benz, which are actively reducing their exposure in the region. As a company based in Taiwan, J-Star concludes that minimizing its operational presence in China is imperative for fostering a more resilient global footprint.
Planned Initiatives and Key Strategic Changes
- Exit from China-Focused OEM Manufacturing: J-Star aims to shift from conventional OEM manufacturing to focusing on proprietary design, research and development, and intellectual property.
- U.S. Expansion and Automation: The company plans to establish its first automated production line in the United States, enhancing efficiency and improving supply chain resilience.
- Asset-Light Operating Model: J-Star will utilize third-party manufacturers while leveraging its own proprietary materials to enhance cost competitiveness and operational efficiency.
- Increased Focus on Innovation: Resources will be redirected towards advanced material development and automation technology, reinforcing J-Star’s competitive advantage.
Status of China Operations and Future Actions
J-Star currently holds interests in four entities in China:
- YMA Composite Materials (DG) Co., Ltd. - 19.5% equity investment
- Forwell Sports Equipment Limited - 19.5% equity investment
- Bohong Technology Jiangsu Co., Ltd. - 100%-owned subsidiary
- Dongguan Changrong New Material Technology Co., Ltd. - 100%-owned subsidiary
The company plans to write off two minority investments valued at approximately US$1.7 million. Additionally, Bohong Technology Jiangsu Co., Ltd. will be dissolved as it has no active operations.
Long-Term Growth Perspective
Management at J-Star believes that these strategic changes will enhance the company's risk profile and operational flexibility, positioning it for sustainable growth, particularly in the U.S. market. CEO Sam Van stated, “This strategic realignment reflects our commitment to building a more resilient, innovation-driven, and globally competitive J-Star. By reducing direct exposure to geopolitical risks and focusing our resources on automation, material science, and IP-driven growth, we are poised to accelerate progress and enhance shareholder value."
About J-Star Holding Co., Ltd.
J-Star (NASDAQ: YMAT) operates through subsidiaries in Taiwan, Hong Kong, and Samoa and has been a staple in the materials composite sector since its inception in 1970. With over 50 years of expertise, J-Star specializes in developing and commercializing technology involving carbon reinforcement and resin systems. The company produces a wide spectrum of high-performance carbon composite products, including components for electric bicycles, healthcare products, and automotive applications. For further details, visit j-starholding.com and ymacorp.com.
Forward-Looking Statements
Certain statements in this release regarding future expectations and plans may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995. Such statements are subject to various uncertainties and actual results may differ significantly. Investors are cautioned against placing undue reliance on these forward-looking statements.
Contact Information
For further inquiries, please contact:
Matt Chesler, CFA
FNK IR
646-809-2183
investor@j-starholding.com