Business
Mercer International Inc. Divests Last Paper Operation to Focus Exclusively on Pulp
Mercer International Inc. Divests Last Paper Operation to Focus Exclusively on Pulp.
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\n\nNEW YORK, Nov. 16 /CNW/ -- Mercer International Inc. (Nasdaq: MERC, TSX:\nMRI.U) announced today it has divested its last remaining paper mill at\nFahrbrucke to focus exclusively on the manufacture and sale of pulp.\nThe Company currently expects to incur costs of approximately euro 6.0\nmillion in connection with funding and other commitments related to the\ndivestiture.\nJimmy S.H. Lee, the CEO of the Company said: \"This transaction completes\nour strategy of exiting the paper business to focus on our core competency of\npulp. Although the Fahrbrucke mill had attempted to focus on high margin\nproducts, the small capacity of its paper machine did not permit it to make a\nsatisfactory contribution. We are pleased to complete this divestment on\nterms which control and quantify our cash costs, preserves the tax attributes\nof the prior business and results in the mill being acquired by new owners who\nare committed to maintaining the assets, including ongoing employment for\nworkers.\" Mr. Lee concluded: \"I would like to wish all the best and success\nto the Fahrbrucke employees in the future under their new ownership.\"\n\nMercer International Inc. is a global pulp manufacturing company. To\nobtain further information on the company, please visit its web site at\nhttp://www.mercerint.com\n\nThe preceding includes forward looking statements which involve known and\nunknown risks and uncertainties which may cause the Company's actual results\nin future periods to differ materially from forecasted results. Among those\nfactors which could cause actual results to differ materially are the\nfollowing: market conditions, competition and other risk factors listed from\ntime to time in the company's SEC reports.\n\n\n\n","length":1795,"tagName":"div"}]