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Bourne Steel and Mabey Bridge, which have a combined turnover of 拢180m, are finalising plans for a joint venture called BSMB, which may become a separate company.

Alex Smale, UK director of Mabey Bridge, said he wants to compete with bigger firms such as Severfield-Rowen and William Hare for the country鈥檚 10 proposed nuclear power stations. The primary target is Hinkley Point in Somerset, where enabling work is being tendered.

He said: 鈥淚鈥檇 like to think it will give us greater buying power as steel prices rise sharply, but this is more about pulling together capabilities to provide a better entity to contract with 鈥� we鈥檙e about heavy plate fabrication and bridging; Bourne is more about construction.鈥�

The two firms have already been in talks with main contractors including Costain, Morgan Sindall, Balfour Beatty and Vinci.

Steve Govier, chief executive of Bourne Steel, said: 鈥淭he initial response from clients to the news of BSMB has been very encouraging. It鈥檚 clear the nuclear sector will provide a significant proportion of the demand for fabricated steel.鈥�

BSMB is now getting its nuclear competence certification from Horizon and EDF.

The venture comes against a backdrop of financial pressure on steel firms. April saw the demise of the 拢28m-turnover Bone Steel, and the British Constructional Steelwork Association has warned that steel prices will increase by 拢190 a tonne in the first half of 2010, driven by the rising costs of raw materials such as iron ore, owing to stronger demand for steel in India and China.