Mercer International Inc. has announced that it has entered into an agreement with Marubeni Corporation, Nippon Paper Industries Co., Ltd., and Daishowa North America Corporation (together, DMI) to acquire all of the issued and outstanding shares of DMI for consideration of $465 million.
DMI owns 100 percent of a bleached kraft pulp mill in Peace River, AB (PRP Mill), and has a 50 percent interest in the Cariboo Pulp and Paper Company (CPP), a joint venture which operates a bleached kraft pulp mill in Quesnel, BC (CPP Mill).
As a result of this transaction, Mercer’s annual production capacity for pulp will increase by approximately 41 percent to 2.2 million ADMTs (air-dried metric tons), and surplus energy will increase by approximately 8 percent to 890,000 MWhs.
Further, the acquisition of DMI will add NBHK pulp to Mercer’s current product mix as well as provide the Company with an expanded market presence in Asia.
DMI also holds 20-year term renewable governmental Forest Management Agreements and Deciduous Timber Allocations in Alberta with an Annual Allowable Cut (AAC) of approximately 2.4 million cubic meters of hardwood and 400,000 cubic meters of softwood.
The PRP Mill is a modern, high performance swing mill with an annual production capacity of approximately 475,000 ADMT of bleached hardwood and softwood kraft pulp, and includes a bio-mass fueled cogeneration power plant, comprised of two turbines — a back pressure turbine with a capacity of 40 MW which generates power for the PRP Mill’s pulp production — and a condensing turbine generator with a capacity of 25 MW, which is used to generate electricity for sale to the Alberta electrical grid. It has an experienced workforce of approximately 280 employees.
The CPP Mill has an annual production capacity of approximately 340,000 ADMT of NBSK pulp, and includes a bio-mass fueled cogeneration power plant, comprised of two turbines — a back pressure turbine with a capacity of 32 MW which generates power for the CPP Mill’s pulp production — and a condensing turbine generator with a capacity of 25 MW, which is used to generate electricity for sale to the BC utility. It has an experienced workforce of approximately 305 employees.
Print this page
