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Greenland Technologies Share Price Surges 191% Cooperation Agreement With SOCMA

Sam Boughedda trader
Updated 18 Feb 2021

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Greenland Technologies (NASDAQ: GTEC)

Greenland Technologies (NASDAQ: GTEC) announced on Thursday morning a cooperation agreement with Fujian South China Heavy Machinery Manufacture Co (SOCMA), a leading company specialised in designing and specialising heavy machinery, causing Greenlands share price to gain 185% before US market open.

The cooperation agreement involves utilising SOCMA's existing supply chain and technology to support Greenland's production of electric vehicles in the US. The agreement also includes Greenland's commitment to invest in the US as a critical region for innovation in the electric vehicle market.

Both parties will share technology and supply management. SOCMA will supply Greenland with the materials, parts, and components needed for development to accelerate its electric vehicles' launch globally. SOCMA also agreed Greenland shall use the relevant technologies and patents involved in its procurement engineering vehicle parts and materials, free of charge.

Greenland’s share price surged to $22 following the news, a 191% gain.

“We are excited to partner with SOCMA, a proven leader in the manufacture of heavy machinery, and see this as a positive development, which will ensure the utilization of SOCMA's existing supply-chain for GTEC's U.S. production of its electric industrial vehicles,” said Raymond Wang, CEO of Greenland.

Raymond Wang continued by saying the “cooperation agreement was designed to leverage both companies' expertise, best practices and vast proprietary knowledge for our mutual benefit, and enhancement of our respective competitive positions.”

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.