Chinese heavy machinery maker Xuzhou Construction Machinery Group Co Ltd [XCMGP.UL] is in talks with Brazilian engineering firm OAS SA [OAEP.UL] to form a joint venture for construction in Africa and Latin America, a person with direct knowledge of the matter said on Friday. According to the person, who was briefed on the talks, the firm commonly known as XCMG would contribute capital, equipment and financing to the venture.