[ACCI-CAVIE] Greenland Technologies Holding Corporation (NASDAQ: GTEC) (“Greenland” or the “Company”), a technology developer and manufacturer of electric industrial vehicles and drivetrain systems for material handling machineries and vehicles, today announced it has signed a new distribution agreement with a minimum potential market value of $5 million to $8.4 million.
The agreement includes both fixed and adjustable minimum purchase requirements across a multi-year term to accommodate Greenland’s expanding electric industrial vehicle product line. If the distribution partner to the agreement were to maintain the minimum purchase requirement used in the second year of the agreement, it would increase the minimum potential market value to approximately $8.4 million.
Raymond Wang, CEO of Greenland, commented, “We could not have structured a better agreement and we expect this will serve as the blueprint for how we accelerate our sales growth worldwide. Our multi-year agreement has a great deal of upside and we expect this to be another important growth driver for our business.”
Under the agreement, the Company’s distribution partner, Elive Maroc S.A.R.L. A.U. (“Partner”), will have the exclusive right to market and sell Greenland’s industrial EV vehicles in Morocco. This will include Greenland’s GEF-Series Lithium Electric Forklifts, its GEL-Series Lithium Electric Front Loaders and its GEX-Series Lithium Electric Excavators. With GDP of approximately $126 billion in 2020 (source: International Monetary Fund), Morocco ranks as the 5th largest country in Africa.
Morocco is an advantageous market ready for the electrification of industrial vehicles as electricity costs remain at a market low price of $0.116/kWh compared to rising diesel costs over $4.00/gal (Source: Morocco’s Ministry of Energy Transition and Sustainable Development). The African country has committed to the United Nations a goal of 80% renewable energy use by 2050.
Raymond Wang, CEO of Greenland, added, “This agreement plants a Greenland flag in Africa, which we expect to build upon as we move forward given our advantaged competitive position and expanding electric industrial vehicle product line. With 53 other countries in Africa we have plenty of growth opportunities ahead of us. Our goal in Africa and across the globe is to partner with proven distribution partners that have an established local presence and proven track record. By leveraging their resources, sales networks and relationships, we can more quickly build the Greenland brand for electric industrial vehicles, while accelerating growth in sales and profitability. We are very excited about this strategically important step forward and remain focused on building upon the sales and customer momentum we have established in our business, as we unlock more of Greenland’s value for shareholders.”
By Greenland Technologies Holding Corporation