Caterpillar, AVIC, China, hydraulic pump, motor--Caterpillar In Parts Joint Venture With Chinese Firm

Caterpillar (NYSE: CAT), the Dow component and the world's largest manufacturer of construction and mining equipment, said it will work with a unit of China's AVIC Heavy Machinery Co. to produce and design medium- to heavy-duty hydraulic pumps and motors.

Financial terms of the venture weren't disclosed. The venture must still be approved by Chinese regulators.

The pumps and motors produced by the venture will be used by Caterpillar and other machinery companies.

Caterpillar previously had a small venture with the state parent of XCMG Construction Machinery Co., but bought out the 15.9 percent it did not already own in the tie-up earlier this year, according to Reuters. (By Gordon Wilcox)

Source: benzinga.com