Trimble, Sunnyvale, Calif. and Caterpillar Inc., Peoria, Ill., announced their plan to form a joint venture to develop and manufacture advanced electronic guidance and control products for earthmoving machines in construction, mining and waste. The companies are in the process of developing a definitive agreement and the joint venture is scheduled to begin operations in 2002.

As part of the 50-50, jointly-owned venture, Trimble and Caterpillar plan to contribute selected existing electronic products that combine GPS, laser, wireless communications, computing and software technologies into on-board packages that improve productivity for mining and construction. Under the proposed financial terms, both parties will contribute about $11 million to form the joint venture. Trimble plans to transfer machine control technology in exchange for about $22 million from the venture.