Japan-based Toyo Co. Ltd. has agreed to acquire a solar module manufacturing facility in the Houston area, where it plans to develop 2.5 gigawatts (GW) of solar module manufacturing capacity by year-end 2025.

The company said Nov. 25 it agreed to buy, via its subsidiary Toyo Solar, 100% of membership interests in Solar Plus Technology Texas. The step came as Toyo establishes a manufacturing footprint in the U.S. to meet demand for American-made solar panels.

Toyo Holdings, which holds 75.01% of membership interests in Toyo Solar, will make a capital contribution of $19.96 million to Toyo Solar, according to the news release. The capital will go toward the Phase 1 construction of the manufacturing site.

“Our strategy is to supply end customers with solar solutions that are technologically advanced, highly reliable, and cost competitive,” Toyo CEO Junsei Ryu said in a news release. “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.”

Toyo said its newly leased facility in the Houston metropolitan area is just over 567,000 sq ft. The company plans to start production of 1 GW of annual module capacity by mid-2025 and before ramping up to 2.5 GW by the end of 2025. It aims to hit 6.5 GW by 2029.

“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,” Ryu said.

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