Greenland Technologies Holding Corp. announced Feb. 14 its board of directors approved a plan to spin off its drivetrain systems business, separating its electric industrial vehicles and drivetrain segments into two independent, publicly traded companies.  

The East Windsor-based EV manufacturer expects to create the companies through a tax-free spinoff to Greenland shareholders. However, the company cautioned there was no guarantee that the plan will pan out, “given economic conditions and changes in the financial markets.” 

The decision follows a review of the company’s business portfolio, which concluded the split “is the most attractive strategic option for growth and enhancing shareholder value.” 

In May 2022, Greenland introduced HEVI Equipment, a clean, industrial, heavy-equipment brand. The launch also served as the rebranding of the company’s Greenland Machinery division, which produces all-electric, industrial-size front loaders, excavators and other equipment. 

After the proposed spinoff, the company would be comprised of its current industrial EV business under the HEVI brand. Greenland’s drivetrain systems would then be spun off as a separate, independently managed and publicly traded company on the OTC market.  

“Greenland has benefited financially, strategically and operationally from our integrated business structure. However, our success has not been appropriately reflected in our share price due to concerns regarding the global exposure of our business in an increasingly volatile geopolitical environment,” CEO Raymond Wang said in a statement. 

Wang added that the industrial EV business had “reached a critical mass” following the rebranding. According to him, the split would allow the company to “maximize the return on investment (ROI) of our investments given the expected growth of the industrial electric vehicle market.” 

According to Grand View Research, the global industrial EV market was estimated at $5.47 billion in 2022 and is expected to grow to $15.8 billion by 2030.

The company added that there would be no change for current shareholders and that they would receive shares in the new spinoff. 

As of end of trading on Feb. 14, shares of Greenland stock were up 9.31%.