PEORIA, IL-Building on a tentative deal made in mid-2008, heavy-equipment maker Caterpillar Inc. and truckmaker Navistar International Inc. have announced plans to team up that include offshore truck production, reports theChicago Tribune. The plans also include Navistar producing a new line of Caterpillar-branded on-highway trucks that will be available through Caterpillar’s U.S. dealers.

Under the agreement, Navistar would produce Caterpillar branded trucks designed for “severe service” applications, such as road construction.

The companies also tentatively agreed to team up in the commercial medium and heavy-duty truck market in select countries outside North America.