BEIJING – The Navistar-Caterpillar alliance has pulled the trigger on a joint venture with Chinese commercial vehicle maker Anhui Jianghuai Automobile Co.

After a year of discussions, the companies signed an agreement to co-develop, build and market advanced diesel commercial engines in China.

The deal, of course, is pending approval by Chinese Government authorities.

The partnership will establish a research and design center in China’s Anhui Province for engineering development, product design and technology advancements.

A dedicated manufacturing facility in the Hefei, Anhui Province of China will be built to produce JAC and the Navistar-designed MaxxForce brand diesel engines.

Heavy and medium duty trucks will be built at an existing 800,000 square foot JAC facility.

The engines will de dropped into JAC’s Sword and Gallop brands and International’s Brand TranStar for the Asian market.

Cat and Navistar joined forces just after Cat left the North American highway engine market to co-develop trucks in foreign markets. Navistar’s upcoming MaxxForce 15-liter engine is also based on Cat’s C15 platform.

JAC’s 2010 sales in combined commercial vehicle segments of light and heavy trucks are 200,000 units.

"These joint ventures represent a significant step in Navistar’s global growth," said Daniel C. Ustian, chairman, president and CEO of Navistar. “Navistar recognizes the importance of the Chinese market and this venture with a strong partner such as JAC enables us to establish a firm foothold in China as we grow our business in the Asia Pacific region."