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Nucor's Harris Steel grows rebar fabrication business
- September 25, 2007
- News Release
- Metals/Materials
Nucor Corp. has announced that its wholly owned subsidiary, Harris Steel Inc. (Harris), has entered into an agreement with Barker Steel Company, Inc. (Barker), to form a new entity that combines the two companies' rebar fabrication operations in the northeastern U.S. market. Harris will contribute its two northeastern U.S. facilities (located in Bethlehem, Pa., and Boston) and cash for a 90 percent equity interest in the new venture. In exchange for a 10 percent interest in the venture, Barker will contribute its eight northeastern U.S. facilities (located in Albany, N.Y.; Canaan, N.H.; South Windsor, Conn.; Avenel, N.J.; Deerfield, Mass.; Westfield, Mass.; Canton, Mass.; and Pawtucket, R.I.). The Barker facilities have total rebar fabrication annual capacity of approximately 218,000 tons. The transaction is expected to close in the fourth quarter of 2007 and is expected to be immediately accretive to earnings.
Additionally, in August 2007, Harris completed the acquisition of Consolidated Rebar, Inc. Consolidated has two rebar fabrication facilities in Arizona (Phoenix and Tucson), with total annual capacity of 32,000 tons. And, in June 2007, Harris acquired South Pacific Steel Corporation. Located in Kapolei, Hawaii, South Pacific Steel has annual rebar fabrication capacity of approximately 29,000 tons.
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