TOYO Co., Ltd (Nasdaq: TOYO) (“TOYO” or the “Company”), a solar solution company, is excited to announce its plan to establish a state-of-the-art solar cell manufacturing facility with an expected annual capacity of 2 gigawatts (GW). The Company has signed a lease agreement for the new facility that is strategically located in Hawassa, Ethiopia, taking advantage of the country’s favorable investment policies, tariff status, and ample hydropower supply.
The project represents an estimated investment of $60 million and will be financed using internal resources and pre-payments.
TOYO expects to begin fitting out the new plant in November 2024, with the new factory anticipated to start production at the end of the first quarter of 2025. TOYO has selected a 31,500 m2 facility in Hawassa that will be modified to meet the needs of a modern, automated cell production. Once complete, TOYO estimates the new facility will create up to 880 jobs, including manufacturing and engineering. Ethiopia is exempt from tariffs for bifacial solar cells under Section 201 of the Trade Act of 1974 of the U.S.
“We are thrilled to embark on this ambitious project, which will enable us to rapidly scale up solar cell production to meet the needs of our planned module facility in the United States. Establishing this manufacturing plant is a key step in our strategic vision to diversify our supply chain and enhance our sourcing capabilities for solar solutions in the global market,” said Mr. Junsei Ryu, CEO of TOYO.
“Approximately 90% of Ethiopia’s electricity generation comes from hydropower, with wind contributing 8% and thermal sources accounting for the remaining 2%. The new facility will be able to take advantage of this green power supply to advancing TOYO’s goal of reducing the carbon footprint across our supply chain as this issue becomes increasingly important to utility-scale developers in the U.S., Europe, and other markets. This facility will enhance our production capabilities and increase efficiency, reduce costs, and respond more swiftly to market demands, positioning TOYO as a competitive key player in the renewable energy sector.”
