Caterpillar to launch JV with Chinese firm

Caterpillar, the world’s largest construction and mining equipment manufacturer, announced on Monday that it has signed a joint venture agreement with Guangxi Yuchai Machinery, a subsidiary of China Yuchai International, AP reported.  The joint venture will provide remanufacturing services for all Yuchai diesel engines and components and some Caterpillar diesel products. Yuchai is the largest producer of internal combustion engines in China, and will control 51% of the new venture, with Caterpillar holding the remainder. It will have registered capital of US$20 million, pending regulatory approval.