GDC Civil Construction, a Gwich'in Development Corporation company, and Arctic Tire Ltd. will become Mackenzie Valley Construction, effective Jan. 1. Ernest Firth, GDC chair, said the joint venture will give both companies strength if a Mackenzie Valley pipeline goes through and better economies of scale if it doesn't.

"We're adding stability to the company," Firth said. "We think it's a good opportunity for our people."

Tom Connors, CEO of GDC, said they have been planning a merger for some time and they chose Arctic Tire because of a proven track record of good business and employing local people.

"The market's only so big and we've probably grown as much as we can, so the next logical thing seems to be acquire something else or merge," Connors said. "Arctic Tire seemed like the best partner."

The new company will be working on winter and summer road construction, oil and gas leases and heavy equipment maintenance as well as the gas station now run by Arctic Tire.

"Basically everything both companies have done separately in the past, will be done under one company," Connors said.

Arctic Tire's owners, Brian and Vince McCarthy, will serve as president and vice president, respectively.

"I'm proud that we've come together in this joint venture," Brian McCarthy said.

"We've created a strong company that secures our economic future."