Japan’s TOYO Co Ltd has announced plans to construct a two-gigawatt (GW) solar cell factory in Hawassa, Ethiopia, as part of its strategy to supply duty-free components to a planned solar panel factory in the United States. The investment comes in response to growing concerns over newly imposed US tariffs on solar products from Southeast Asian countries, including Vietnam, where TOYO currently manufactures its solar products.
The decision to establish the Ethiopian facility is influenced by the tariff exemptions that Ethiopia enjoys, particularly for double-sided solar panels. The US recently imposed preliminary tariffs on solar panels and cells from Malaysia, Vietnam, Thailand, and Cambodia, in an effort to bolster domestic clean energy production.
TOYO's CEO, Junsei Ryu, expressed excitement about the project, which will help the company meet the needs of its planned US-based module facility. The Ethiopian plant, with an estimated investment of US$60 million (RM258 million), is expected to create 880 jobs and begin production by the first quarter of 2025.
This move is part of TOYO’s broader strategy to navigate trade restrictions while scaling up production to meet the increasing demand for solar energy technologies in the US.
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