You could split the file using ksh/bash like this:
#!/usr/bin/ksh
IFS="<"
printf "<%s\n" `cat $1`
Then above script would be used as following (assuming name is xmlparse.sh)
./xmlparse.sh $your_one_line_xml > ${your_one_line_xml}_new
You might need to adjust the result like deleting first line or you could play with IFS value so that you could split the file based on some tag name only.