Toyota Commits to San Antonio Plant Expansion With $4B Plan

Toyota unveiled plans this week to invest $3.6 billion to double its presence in San Antonio by 2030.

The expansion is set to include a second vehicle assembly line to add Tacoma pickup truck production as the company looks to part from one of the truck’s former production locations in Baja California, Mexico. The second production facility is set to span 2.5 million square feet, and will undoubtedly be set on Toyota’s 2,000 acres that used to be ranch land, according to the San Antonio Business Journal.

The first manufacturing campus, which focuses on the larger Tundra pickup and Sequoia SUV lines, sits at 1 Lone Star Pass on the South Side of the city. San Antonio City Council and Bexar County commissioners have set aside a total of $178 million of tax incentives in support for the project, which San Antonio officials say could create a windfall of economic value for the city.

“Just during the construction phase, this project is estimated to have an economic impact of $3.2 billion,” San Antonio city manager Erik Walsh told the outlet, adding that once the assembly lines start humming, that figure could more than double.

The Texas Enterprise Fund chipped in with a $20 million grant, and the expansion was labeled a qualified project by the Texas Job, Energy, Technology and Innovation program.

With the expansion, Toyota’s team will grow to around 6,000 employees, supported by onsite suppliers. The company is currently finishing up construction on a $531 million rear axle manufacturing plant that’s set to begin production in November of this year. Toyota claims that it has invested $8.3 billion in its San Antonio sites since they broke ground in 2003. State records show that Toyota is also planning a 32,000-square-foot office building at the expanded campus, adding to its investment tally by $18.2 million.

— Hunter Cooke