TOYO Co., Ltd, a solar solution company, announced it has agreed to acquire 100% of membership interests in Solar Plus Technology Texas LLC located in Houston metropolitan area, Texas, via its subsidiary TOYO Solar LLC.
The newly leased facility spans 567,140 square feet which we plan to accommodate 2.5 GW of solar module manufacturing capacity and further expand it to 6.5 GW by 2029. The factory construction of Phase 1 of the facility has been completed, and a portion of the required equipment will arrive by early 2025.
The facility's first 1 GW production is expected to commence by mid-2025. Production capacity is expected to be increased to 2.5 GW by the end of 2025, in anticipation of a strong order pipeline from U.S. customers.
This acquisition aligns with TOYO's mission to expand its footprint in the U.S. to be closer to the majority of its clients, meet the demand for American-made solar panels, and contribute to the growing demand for secure, sustainable energy solutions as demands on the grid continue to rise.
"This acquisition marks a significant step in TOYO's strategy to establish a manufacturing footprint in the U.S., complementing our current manufacturing presence in Vietnam and Ethiopia," said Mr. Junsei Ryu, Chairman and CEO of TOYO. "Our strategy is to supply end customers with solar solutions that are technologically advanced, highly reliable, and cost competitive. We are committed to building a robust global solar supply chain structure that efficiently and competitively serves the U.S. market and other regions, adapting to a dynamic policy environment."
As a result of this acquisition, TOYO Solar LLC acquires 100% of membership interests in Solar Plus. TOYO Holdings LLC, a 100% owned subsidiary of TOYO, holds 75.01% of membership interests in TOYO Solar LLC and will make a capital contribution in the total amount of $19.96 million to TOYO Solar LLC, which is expected to be contributed to the Phase 1 construction of the manufacturing site of Solar Plus.
"By acquiring Solar Plus, we will accelerate our development and leverage our team's proven manufacturing excellence, as well as the extensively established customer relationships and the brand of our sister company, Vietnam Sunergy, a Tier 1 Bloomberg NEF solar manufacturer," noted Mr. Ryu. "We are confident that our expansion in the U.S. will effectively deliver a comprehensive solar technology solution, addressing bottlenecks for developers, meeting local content requirements for U.S. solar projects, and enhancing TOYO's competitive advantage."
