US Caterpillar, Trimble intends to form a joint venture

Caterpillar and Trimble recently announced that they intend to form a joint venture to jointly develop and produce advanced electronic guidance and control products for bulldozers used in the construction, mining, and scrap industries. The new company will start its business in early 2002.
Caterpillar and Trimble will each control a 50% stake in the new company, and the two companies will provide existing electronic products including GPS, lasers, wireless communications, computing and software technologies to increase mining and Construction market productivity. According to the proposed financial terms, the two parties will each invest 11 million US dollars in the establishment of funds. In addition, Trimble has also transferred its machine control technology to new businesses for $22 million.
It is reported that the upcoming joint venture will develop machine control products that use site design information and precise positioning technology. This product can automatically handle bulldozer blade and other machine equipment. The company will become the exclusive supplier to Caterpillar and Trimble. The two companies will sell, distribute and repair products produced by the joint venture through their own independent sales channels.
Caterpillar is the world's leading manufacturer of construction equipment, mining equipment, diesel engines, natural gas engines and industrial turbines. Trimble is the world's leading global positioning system technology innovation company.