Chinese Greenland chose Morocco as its first platform in Africa to sell its industrial electric vehicles
Greenland Technologies Holding Corporation, a Chinese group that develops and manufactures 100% electric industrial vehicles has signed a distribution agreement with Morocco, its first platform in Africa.
The Chinese technology developer and manufacturer of electric industrial vehicles and drivetrain systems for material handling machineries and vehicles announced over the weekend it has signed a new distribution agreement with a minimum potential market value of $5 million to $8.4 million.
This exclusive distribution agreement to access the Moroccan market includes both fixed and adjustable minimum purchase requirements across a multi-year term to accommodate Greenland’s expanding electric industrial vehicle product line, the company said in a press release.
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, it said.
Under the agreement, the Company’s distribution partner, Elive Maroc S.A.R.L. A.U., will have the exclusive right to market and sell Greenland’s industrial EV vehicles in Morocco.
Access to the Moroccan market is a first step in the company’s strategy to establish itself firmly in Africa, according to Raymond Wang, CEO of Greenland.
“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,” the company’s CEO was quoted in the press release as saying.
“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,” he stated further.
As to the choice of the Kingdom for this first commercial establishment on the continent, the Chinese group underlines that “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.
Besides, the company explains, the Kingdom has committed to the United Nations a goal of 80% renewable energy use by 2050.