Chinese home appliance manufacturer Gree Electric Appliances plans to issue new shares to fund the acquisition of a controlling stake in Zhuhai Yinlong New Energy Company, a Chinese manufacturer of electric vehicles.

Zhuhai Yinlong produced 3,100 electric buses last year and received orders for a further 7,000 units, according to the company. It is also the controlling shareholder of Altair Nanotechnologies, a US lithium battery manufacturer based in Nevada.

It is understood that Gree Electric wants to increase its exposure to more fast-growing segments of the economy, reflecting sluggish growth for domestic appliances and domestic air conditioning systems.

Zhuhai Yinlong has three production bases in China with the capacity to make 33,000 electric buses and 100,000 electric passenger vehicles per year.