XUZHOU, China (AP) -- Caterpillar Inc. said Monday it has reached a deal to boost its stake in a joint venture with a Chinese company as part of an effort to expand its business in China.
Caterpillar said it agreed to buy Xuzhou Construction Machinery Group's 15.87 percent ownership interest Caterpillar Xuzhou Ltd., a joint venture launched in 1995.
Details of the transaction were not disclosed. It is subject to Chinese regulatory clearance.
If approved, the joint venture would become wholly owned by Caterpillar.
In addition, Caterpillar said it broke ground on a new excavator production facility in Xuzhou. Once completed in 2014, the company will have boosted its China-based excavator capacity by 400 percent, the company said.
Caterpillar is based in Peoria, Ill., and is the world's largest maker of construction and mining equipment.
Shares dipped 31 cents to $64.40 on Monday.