TWO of Gwent's leading suppliers of steel lintels are joining forces to create a better commercial environment for survival.

In what many may see as a take-over, but which the firms concerned, Caerphilly-based Catnic and Newport-based Dorman Long Lintels, say is a merger, production is to be rationalised to improve cost- effectiveness and to give customers a single source of supply.

This single supply source will operate out of the current Catnic site at Pontygwindy Industrial Estate. The merged company will retain the name Catnic.

Under the terms of the merger, all of Dorman Long's full-time employees are to be offered jobs at Catnic.

The 20 people involved will join an existing workforce at Catnic of more than 220. Temporary employees at Dorman Long may be offered jobs at the Whitehead steelworks, Newport, where the company is based.

Production is expected to cease at Dorman Long at the end of June.

At that point Catnic will take over the operation and order book.

The merger is expected to result in Catnic expanding its current market share.

At present it is hovering around the 30% mark, with Dorman Long having a 7% share.

The companies' nearest rival in the UK has a 30% share.

Although it is difficult to make a comparison of output because Catnic measures its output in linear metres and Dorman Long measures output in tonnes, it is clear the merger will see an increase in the current Catnic output of 1.7 million metres of lintels each year.

John Griffiths, sales and marketing director at Catnic, said: "We operate in an intensely competitive market- place.

"I see nothing but good coming from this move. It benefits both companies by bringing all production to one site and utilising Catnic's more modern production methods."