SHANGHAI, April 2026 - Wells Advanced Materials (Shanghai) Co., Ltd. (Wells) continues to execute its global strategic expansion with the official commencement of operations of its Hungarian subsidiary, WAM UNIT COLOR (hereinafter referred to as “the Hungarian Subsidiary”). Leveraging Hungary’s favorable geographic location and regulatory environment, the subsidiary serves as a core conduit for channeling Chinese epoxy composite technologies to Europe and servicing global markets, setting a new benchmark for the internationalization of the composites industry.

According to Wells’ 2025 annual report, the company utilized its own funds to acquire an 85% equity stake in Hungary-based UNIT COLOR Kft. for €1.5 million in cash. The acquisition was executed through FORTIFIEDMAT CORP PTE. LTD., a Singapore-based wholly-owned subsidiary established via Beijing Wells. The transaction was successfully completed in December 2025. Following the closing, WAM UNIT COLOR has assumed full responsibility as the primary vehicle for Wells’ European operations, encompassing localized production, technology transfer, customer service, and market development, thereby facilitating deep market penetration across Europe.

Capitalizing on Hungary’s distinctive development advantages, WAM UNIT COLOR has established four core strategic roles:

First, European Production Hub - Accelerating the renovation and expansion of existing production facilities, introducing mature domestic manufacturing lines with localized adaptation, rapidly establishing regional production capacity and delivery capabilities, and creating a manufacturing base dedicated to the European market.

Second, Technology Spillover Platform - Transferring Wells’ established product and technology portfolios - covering wind turbine blades, low-altitude flight, and automotive lightweighting - to the European market, enabling cross-regional value realization of technological assets.

Third, Regional Customer Service Center - Positioning in close proximity to key European clients, including wind turbine OEMs and automotive manufacturers, to deliver customized products, technical support, and after-sales services.

Fourth, Advanced Materials Export Gateway - Leveraging the European market as a home base while extending reach to adjacent emerging markets in Central and Eastern Europe and North Africa, broadening export pathways for advanced materials.

Looking forward, WAM UNIT COLOR will concentrate on three strategic priorities to steadily advance its roadmap:

Market Development - Deepening the core wind energy business by capitalizing on Europe’s offshore wind momentum and Hungary’s wind power policy incentives to promote the deployment of epoxy resin products for 143-meter large-blade wind turbine blades, aiming to become a regional mainstream supplier. Expanding into automotive lightweighting to serve Hungary’s new energy vehicle industrial cluster with fast-curing RTM epoxy resins and prepregs. Developing emerging applications such as low-altitude economy structural materials and hydrogen storage cylinder resins, while concurrently planning for medium-to-long-term exports of epoxy resins for electronic and electrical insulation and encapsulation.

Technology and Supply Chain - Strengthening the closed-loop synergy of “domestic R&D + overseas application” proactively advancing recyclable and degradable epoxy resin technologies in response to new EU environmental regulations. Driving supply chain localization by onboarding local Hungarian suppliers to mitigate supply chain risks and building a differentiated competitive edge against global industry leaders such as Hexion and Huntsman.

Platform Development - Gradually evolving the Hungarian Subsidiary into Wells’ European regional headquarters, including the establishment of a local R&D center to enhance localized innovation capabilities.

The launch of the Hungarian Subsidiary represents a pivotal move by Wells to mitigate the adverse impacts of international trade barriers and achieve localized delivery in the European market. This initiative underscores the company’s capability and commitment to deepening its presence in the epoxy composites sector while expanding its global footprint. It also provides critical support for introducing Chinese epoxy composite technologies and products to international markets. Going forward, the subsidiary will continue to empower the high-quality development of the European composites industry.

About Wells Advanced Materials

Wells Advanced Materials (Shanghai) Co., Ltd. is a leading Chinese enterprise specializing in the research, development, production, and application of epoxy resin composite materials, serving industries including wind energy, automotive lightweighting, low-altitude economy, and electronics.

About WAM UNIT COLOR

WAM UNIT COLOR is Wells' Hungarian-based European subsidiary, functioning as a regional hub for production, technology transfer, customer service, and market expansion.