Mercer International Inc. Announces European Union Investigation Into European Wood Pulp Industry

Rhea-AI Summary

Mercer International (MERC) is currently under investigation by the European Union for potential cartel activities in the wood pulp sector. The investigation includes inspections at major European pulp producers, including Mercer’s German operations. The company is cooperating fully with the inquiry. Mercer is a global producer of bioproducts and forest products, with an annual production capacity of approximately 2.2 million tonnes of kraft pulp and 550 million board feet of softwood lumber.

Positive

• Global presence in diversified markets including Germany, Canada, the United States, and Australia.
• Annual production capacity of 2.2 million tonnes of kraft pulp and 550 million board feet of softwood lumber.

Negative

• Under investigation by the European Union, which may entail legal and financial risks.
• Potential damage to reputation and operational disruptions due to the ongoing cartel investigation.

NEW YORK, Oct. 12, 2021 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) announces that the European Union has opened a cartel investigation into the wood pulp sector and conducted inspections of major European pulp producers including the Company's German operations. The Company is cooperating with the investigation.

At Mercer International Inc., we are exceptional people creating bioproducts for a more sustainable world. We are a diversified global producer of forest products, bioproducts, and green electricity with operations in Germany, Canada, the United States, and Australia with a consolidated annual production capacity of approximately 2.2 million tonnes of kraft pulp and 550 million board feet of softwood lumber. For further information, please visit 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", "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, our use of derivatives, 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:

Jimmy S.H. Lee
Executive Chairman
(604) 684-1099

David M. Gandossi, FCPA, FCA
Chief Executive Officer
(604) 684-1099

FAQ

What is the recent news about Mercer International (MERC)?

Mercer International is under investigation by the European Union concerning potential cartel activities in the wood pulp sector.

What operations are included in the EU investigation for Mercer International?

The investigation includes Mercer International's operations in Germany.

What is Mercer International's production capacity?

Mercer International has an annual production capacity of approximately 2.2 million tonnes of kraft pulp and 550 million board feet of softwood lumber.

How is Mercer International responding to the EU investigation?

Mercer International is fully cooperating with the European Union's investigation.

What risks is Mercer International facing due to the EU investigation?

The investigation poses legal, financial, and reputational risks to Mercer International.