#United States #Houston #TOYO #Solar Plus #Texas Acquisition

TOYO Co., Ltd Expands Solar Manufacturing in America

In a strategic move that underscores its commitment to U.S. solar energy production, TOYO Co., Ltd (Nasdaq: TOYO) has formally announced the acquisition of Solar Plus Technology Texas LLC, a key player in the solar module manufacturing landscape located in the Houston metropolitan area. This acquisition comes via TOYO’s subsidiary, TOYO Solar LLC, and aims to significantly bolster the company’s operations within the American market.

Facility Overview

The facility, which encompasses an impressive 567,140 square feet, is slated to have an initial solar module manufacturing capacity of 2.5 gigawatts (GW), with plans to increase this to 6.5 GW by the year 2029. Construction of the first phase of the facility is already complete, with preparations underway for the arrival of essential manufacturing equipment expected in early 2025.

Production Timeline

Production at the new facility is projected to begin in mid-2025, where the first 1 GW of solar modules is set to roll off the assembly line. By the end of 2025, TOYO anticipates ramping up production to the planned 2.5 GW capacity, propelled by a robust pipeline of orders from clients across the United States.

Strategic Importance

This acquisition aligns perfectly with TOYO's mission to enhance its presence in the U.S. market, allowing for closer proximity to a majority of its clientele while simultaneously addressing the growing demand for American-made solar solutions. The strategic focus is not only on expanding production but also on contributing to sustainable energy solutions as the infrastructure adapts to increased energy demands.

Mr. Junsei Ryu, Chairman and CEO of TOYO, highlighted that this acquisition represents a pivotal step in their strategy to establish a significant manufacturing base in America, complementing their existing operations in regions like Vietnam and Ethiopia. "Our goal is to deliver technologically advanced, reliable, and cost-effective solar solutions while building a strong global supply chain that serves both the U.S. and other international markets," he noted.

Investment Details

With this acquisition, TOYO Solar LLC now holds 100% of the membership interests in Solar Plus. TOYO Holdings LLC, a fully owned subsidiary of TOYO, will contribute approximately $19.96 million towards the initial phase of the construction at the newly leased manufacturing site, signifying a considerable investment in the U.S. solar landscape.

Notably, Mr. Ryu also emphasized the advantages of leveraging existing relationships within the industry, particularly through their sister company, Vietnam Sunergy, known for being a Tier 1 solar manufacturer according to Bloomberg NEF. This collaboration is anticipated to enhance operational efficiency and strengthen their market position, enabling them to navigate local content regulations effectively and meet the evolving needs of U.S. solar projects.

About TOYO Co., Ltd.

TOYO Co., Ltd. positions itself as a comprehensive solar solutions provider, focusing on upstream production of solar wafers and silicon, midstream production of solar cells, and downstream manufacturing of photovoltaic modules. The company is uniquely poised to deliver high-quality solar cells at competitive scales and costs, thereby reinforcing its role in the global market for solar energy.

Conclusion

As the demand for solar energy surges amid a global shift towards sustainable practices, TOYO's acquisition of the Solar Plus manufacturing facility represents a significant advancement in its capabilities. By increasing its production capacity and establishing a solid foothold in the U.S., the company is well-positioned to navigate the competitive landscape of solar energy solutions and contribute to a more sustainable future.

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This press release includes forward-looking statements regarding TOYO’s future endeavors, including anticipated growth and production capabilities. TOYO cautions that actual results may significantly differ due to various risks and uncertainties that could impact performance and operational strategy.