Update on Fire at Mercer Stendal Pulp Mill
Mercer International (Nasdaq: MERC) reported an update regarding a fire at its Stendal pulp mill, which primarily affected the wood chip storage area. The fire has been extinguished, and there was no impact on mill operations. A detailed assessment of damages and a restart plan will be developed, with no set timeline for recommencing operations. The company has property and business interruption insurance covering the incident, subject to deductibles. Mercer operates globally with a significant production capacity in pulp and lumber.
- No damage to mill operations reported.
- Property and business interruption insurance expected to cover damages.
- No timeline available for recommencing operations.
- Damage limited to storage area may indicate operational disruptions.
NEW YORK, July 04, 2022 (GLOBE NEWSWIRE) -- Mercer International (“Mercer” or the “Company”) (Nasdaq: MERC), provides the following update to its press release of July 1, 2022 regarding a fire which occurred in the wood chip storage area at our Stendal pulp mill.
Currently, the fire has been primarily extinguished but as is customary in such cases, the site will be monitored for hot spots for several more days. The fire did not damage the mill operations and the damage appears to have been confined to the wood chip storage bunkers and associated conveying systems. The Company will, as permitted by site monitoring measures, conduct a more formal detailed assessment of damage and required repairs and develop a restart plan. Until such assessment and plan, there can be no assurance as to when the mill will recommence operations.
The Company maintains property and business interruption insurance for the Stendal pulp mill and we expect the property damage and business interruption will be covered by such insurance, subject to customary deductibles and limits.
About Us
Mercer International Inc. is a global forest products company with operations in Germany, USA and Canada with a consolidated annual production capacity of 2.3 million tonnes of pulp, 550 million board feet of lumber, and 140 thousand cubic meters of CLT. To obtain further information on the company, please visit its website at 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, 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 of the Board
(604) 684-1099
Juan Carlos Bueno
President & Chief Executive Officer
(604) 684-1099
FAQ
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