September 07, 2008

Nucors Harris Steel grows rebar fabrication business

Nucor Corporation announced that its wholly owned subsidiary Harris Steel Inc has entered into an agreement with Barker Steel Company Inc to form a new entity that combines the 2 companies' rebar fabrication operations in the northeastern US market.

As per announcement, Harris will contribute its 2 northeastern US facilities located in Bethlehem, PA and Boston and cash for a 90% equity interest in the new venture. In exchange for a 10% interest in the venture, Barker will contribute its 8 northeastern US facilities located in Albany in New York, Canaan, South Windsor, Avenel Deerfield, Westfield, Canton and Pawtucket. The Barker facilities have total rebar fabrication annual capacity of approximately 218,000 tons.

Additionally, in August 2007, Harris completed the acquisition of Consolidated Rebar Inc. Consolidated has 2 rebar fabrication facilities in Arizona, with total annual capacity of 32,000 tons. And, in June 2007, Harris acquired South Pacific Steel Corporation, which has annual rebar fabrication capacity of approximately 29,000 tons.

Mr Hamilton Lott executive VP of Nucor said that "We are excited to welcome the Barker, Consolidated and South Pacific Steel employees to the Harris team and to the Nucor family. Just as we expected, Harris is already proving to be a powerful growth platform for Nucor in the rebar fabrication business. 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 1 million tons."

Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the US and Canada. It is North America's largest recycler.