Peoria, Ill.-based Caterpillar's joint manufacturing venture with Mitsubishi Heavy Industries in Japan will expand over the next few years, the companies recently announced. Shin Caterpillar Mitsubishi Ltd. will take over production of most of Mitsubishi Heavy Industries' construction equipment at its plant in Sagamihara, Japan.

MHI's compact wheel loaders, track-type tractors, mobile rock crushers, crawler carriers and articulated trucks will be transferred to the Shin plant. The move will allow MHI, which will still manufacture motor graders, additional manufacturing space for its growing material handling and engine business.

“We are committed to continually improving our product line by leveraging our engineering, manufacturing and distribution expertise while staying focused on providing the best value to customers,” Caterpillar chairman Glen Barton said.

“This agreement expands our strong relationship with Caterpillar and provides many benefits to the joint venture, including synergies with existing construction equipment manufacturing operations,” said Takashi Nishioka, MHI president.