Caterpillar Inc. said Friday it agreed to form a joint venture with a Chinese transmission manufacturer that will build drivetrain systems and other components for Caterpillar machinery and produce a line of automatic transmissions for highway travel.
Peoria-based Caterpillar, which is looking to expand its range of products in China, would be a 45 percent stakeholder in the joint venture. Transmission maker Fast Gear would have 51 percent, and Shaanxi Fast Auto Drive Group Co. Ltd. would hold a 4 percent stake.
Caterpillar, the world’s largest maker of construction and mining equipment, currently has nearly 8,000 employees across China.
The joint venture proposal requires regulatory approvals in China.