Mercer Announces Downtime at its Peace River Mill
Mercer International Inc. (Nasdaq: MERC) has announced temporary downtime at its Peace River mill due to a mechanical failure in the mill's digester. The company expects repairs and assessments to be completed by mid-October 2024, resulting in a reduction of approximately 45,000 tonnes of NBHK production. Mercer maintains property and business interruption insurance for the mill and anticipates coverage for the repairs and downtime, subject to standard deductibles and limits.
Mercer International is a global forest products company with operations in Germany, the USA, and Canada. The company has a consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels.
Mercer International Inc. (Nasdaq: MERC) ha annunciato un'interruzione temporanea delle operazioni presso il suo stabilimento di Peace River a causa di un guasto meccanico nel digestore del mulino. L'azienda prevede che le riparazioni e le valutazioni siano completate entro metà ottobre 2024, comportando una riduzione di circa 45.000 tonnellate di produzione di NBHK. Mercer ha una polizza per l'assicurazione dei beni e dell'interruzione dell'attività per il mulino e si aspetta di ricevere copertura per le riparazioni e il periodo di inattività, soggetta a franchigie e limiti standard.
Mercer International è una società globale di prodotti forestali con operazioni in Germania, negli Stati Uniti e in Canada. L'azienda ha una capacità di produzione annuale consolidata di 2,1 milioni di tonnellate di pasta, 960 milioni di piedi cubi di legname, 210 mila metri cubi di legno lamellare incrociato, 45.000 metri cubi di legno stratificato, 17 milioni di pallet e 230.000 tonnellate metriche di biocarburanti.
Mercer International Inc. (Nasdaq: MERC) ha anunciado un tiempo de inactividad temporal en su fábrica de Peace River debido a un fallo mecánico en el digestor de la fábrica. La empresa espera que las reparaciones y evaluaciones se completen para mediados de octubre de 2024, lo que resultará en una reducción de aproximadamente 45,000 toneladas de producción de NBHK. Mercer cuenta con un seguro de propiedad y de interrupción de negocio para la fábrica y anticipa cobertura para las reparaciones y el tiempo de inactividad, sujeto a deducibles y límites estándar.
Mercer International es una empresa global de productos forestales con operaciones en Alemania, EE. UU. y Canadá. La empresa tiene una capacidad de producción anual consolidada de 2.1 millones de toneladas de pulpa, 960 millones de pies tablares de madera, 210 mil metros cúbicos de madera laminada cruzada, 45,000 metros cúbicos de madera encolada, 17 millones de pallets y 230,000 toneladas métricas de biocombustibles.
머서 인터내셔널 주식회사(Mercers International Inc.)(Nasdaq: MERC)는 평화 강 공장에서 제조기계의 고장으로 인해 임시 중단이 있음을 발표했습니다. 회사는 2024년 10월 중순까지 수리 및 점검이 완료될 것으로 예상하고 있으며, 이로 인해 약 45,000톤의 NBHK 생산량이 감소할 것으로 보입니다. 머서는 공장에 대한 자산 및 사업 중단 보험을 가지고 있으며, 수리와 중단에 대한 보험 적용이 있을 것으로 예상하고 있습니다. 단, 표준 공제 및 한도 대상입니다.
머서 인터내셔널은 독일, 미국 및 캐나다에서 운영하는 글로벌 임업 제품 회사입니다. 이 회사는 210만 톤의 펄프, 9억 6천만 보드 피트의 목재, 21만 세제곱미터의 크로스 라미네이티드 우드, 45,000 세제곱미터의 글루람, 1천7백만 개의 팔레트 및 23만 톤의 바이오 연료를 생산할 수 있는 연간 통합 생산 능력을 보유하고 있습니다.
Mercer International Inc. (Nasdaq: MERC) a annoncé un temps d'arrêt temporaire de son usine de Peace River en raison d'une panne mécanique dans le digesteur de l'usine. L'entreprise s'attend à ce que les réparations et les évaluations soient terminées d'ici mi-octobre 2024, entraînant une réduction d'environ 45 000 tonnes de production de NBHK. Mercer dispose d'une assurance pour les biens et les interruptions d'activité pour l'usine et anticipe une couverture pour les réparations et le temps d'arrêt, sous réserve de franchises et de limites standard.
Mercer International est une entreprise mondiale de produits forestiers ayant des opérations en Allemagne, aux États-Unis et au Canada. L'entreprise a une capacité de production annuelle consolidée de 2,1 millions de tonnes de pâte, 960 millions de pieds cubes de bois, 210 000 mètres cubes de bois lamellé croisé, 45 000 mètres cubes de bois lamellé, 17 millions de palettes et 230 000 tonnes métriques de biocarburants.
Mercer International Inc. (Nasdaq: MERC) hat eine vorübergehende Stilllegung seiner Peace River-Papierfabrik aufgrund eines mechanischen Ausfalls im Verdampfer der Fabrik bekannt gegeben. Das Unternehmen erwartet, dass Reparaturen und Prüfungen bis mitte Oktober 2024 abgeschlossen sind, was zu einer Reduzierung von etwa 45.000 Tonnen NBHK-Produktion führen wird. Mercer hat eine Sach- und Betriebsunterbrechungsversicherung für die Fabrik und erwartet eine Deckung der Reparaturen und Ausfallzeiten, vorbehaltlich der üblichen Selbstbeteiligungen und Deckungsgrenzen.
Mercer International ist ein globales Unternehmen der Forstproduktebranche mit Standorten in Deutschland, den USA und Kanada. Das Unternehmen verfügt über eine konsolidierte jährliche Produktionskapazität von 2,1 Millionen Tonnen Zellstoff, 960 Millionen Board-Füßen Schnittholz, 210.000 Kubikmetern Brettschichtholz, 45.000 Kubikmetern Brettschichtholz, 17 Millionen Paletten und 230.000 metrischen Tonnen Biokraftstoffen.
- Company has property and business interruption insurance expected to cover repairs and downtime
- Repairs and assessments anticipated to be completed by mid-October 2024
- Peace River mill experiencing downtime due to mechanical failure in digester
- NBHK production at the mill expected to be reduced by approximately 45,000 tonnes during repair period
Insights
The downtime at Mercer's Peace River mill due to a mechanical failure in the digester is a significant short-term operational issue. The expected 45,000-tonne reduction in NBHK production represents approximately
However, the presence of property and business interruption insurance mitigates the financial risk. While there will likely be some impact from deductibles, the overall financial effect should be Investors should monitor the situation for any delays beyond mid-October or unexpected complications that could extend the production disruption.
Long-term implications appear minimal, assuming timely repairs. This event highlights the importance of regular maintenance and the value of comprehensive insurance coverage in the capital-intensive pulp and paper industry. Mercer's diversified operations across multiple countries and products provide some buffer against localized disruptions like this.
The mechanical failure in the Peace River mill's digester underscores the complexity and potential vulnerabilities in pulp production processes. Digesters are critical components in kraft pulping and their failure can significantly impact mill operations. The expected three-week downtime for repairs suggests a substantial issue, possibly related to pressure vessel integrity or internal components.
This incident highlights the importance of predictive maintenance and regular inspections in pulp mills. It may prompt Mercer to review and potentially enhance its maintenance protocols across all facilities. The company's ability to estimate a repair timeline indicates a well-structured response plan, which is important in minimizing downtime and financial impact.
From an operational perspective, the 45,000-tonne production loss may lead to temporary supply chain adjustments and could potentially affect market dynamics if prolonged. However, Mercer's diverse product portfolio and multi-site operations should help absorb this temporary setback.
NEW YORK, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Mercer International Inc. ("Mercer" or the "Company") (Nasdaq: MERC) announced today that its Peace River mill has taken downtime to complete necessary repairs to the mill's digester after experiencing a mechanical failure. The Company currently expects the repairs and related assessments will be completed in mid-October 2024, and anticipates that NBHK production at the mill will be reduced by approximately 45,000 tonnes during such period. The Company maintains property and business interruption insurance for the Peace River mill and expects the repairs and business interruption will be covered by such insurance, subject to customary deductibles and limits.
Mercer International Inc. is a global forest products company with operations in Germany, the USA and Canada with consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets and 230,000 metric tonnes of biofuels. To obtain further information on the company, please visit its web site at https://www.mercerint.com.
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. Words such as "expects", "anticipates", "are optimistic that", "projects", "intends", "designed", "will", "believes", "estimates", "may", "could" and variations of such words and similar expressions are intended to identify such forward-looking statements. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.
APPROVED BY:
William D. McCartney
Interim Chairman
(604) 684-1099
Juan Carlos Bueno
Chief Executive Officer
(604) 684-1099
FAQ
What caused the downtime at Mercer's Peace River mill?
How long is the expected downtime for Mercer's Peace River mill?
How much will NBHK production be reduced at Mercer's Peace River mill during the downtime?
Does Mercer (MERC) have insurance coverage for the Peace River mill downtime?
