Nucor Corporation announced Thursday that its wholly owned subsidiary, Harris Steel Inc. has entered into an agreement with Barker Steel Company Inc. to merge the two companies' rebar fabrication operations in the northeastern US.
Harris will combine its two northeastern US facilities, located in Bethlehem, Pennsylvania and Boston, Massachusetts, with Baker's eight northeastern US facilities, located in Albany, New York; Canaan, New Hampshire; South Windsor, Connecticut; Avenel, New Jersey; Deerfield, Massachusetts; Canton, Massachusetts; and Pawtucket, Rhode Island.
Harris will also contribute cash for a 90 percent equity interest in the new venture, while Barker will have a 10 percent interest in the venture.
Nucor Executive Vice President Hamilton Lott told press: "As North America's largest rebar producer, Nucor is extremely well-positioned for profitable growth downstream in rebar fabrication. With the completion of the Barker joint venture, Harris Steel's annual rebar fabrication capacity will exceed one million tons."
The acquisition of Barker follows Harris' August 2007 acquisition of Consolidated Rebar Inc. Consolidated has two rebar fabrication facilities in Arizona with a total annual capacity of 32,000 net tons. Also, in June 2007, Harris acquired South Pacific Steel Corporation, located in Kapolei, Hawaii with an annual rebar fabrication capacity of approximately 29,000 net tons.