Caterpillar Inc., the world's largest maker of construction and mining equipment, said Monday that it signed a joint venture deal with a Chinese company to create a remanufacturing business.

Caterpillar (China) Investment Co. Ltd. and China Yuchai International Ltd.'s Guangxi Yuchai Machinery Co., Ltd. (Yuchai) will work together on the venture, which will provide remanufacturing services for Yuchai diesel engines and components and some of Caterpillar's diesel engines and components.

Diesel engine maker Yuchai is the largest producer of internal combustion engines in China.

The company will be 51 percent owned by Guangxi Yuchai, with the remaining stake held by Caterpillar China. Other terms of the agreement weren't disclosed.

The joint venture, whose registered capital is $20 million, still needs to be approved by the appropriate Chinese regulators.