Canada commits C$20M to Mercer International's Alberta pulp mill

Mercer International Inc. (Nasdaq: MERC) announced that the Government of Canada, through Prairies Economic Development Canada, has committed C$20 million (approximately US$14 million) in financial support to its subsidiary, Mercer Peace River Pulp Ltd., under the Regional Tariff Response Initiative.

The funding consists of a C$1 million non-repayable contribution and a C$19 million repayable contribution, with repayment scheduled to begin in 2031. The announcement was made during a visit to the Peace River mill in northern Alberta by Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for PrairiesCan.

According to the company's statement, the funding is intended to support a broader transformation plan at the mill, including productivity improvements, modernization efforts, bio-energy production expansion, and carbon capture and storage preparations. The work builds on an existing carbon dioxide capture demonstration unit already operating at the facility.

"This investment is an important step in the continued modernization of Mercer Peace River," said Juan Carlos Bueno, President and CEO of Mercer. "It supports improvements to the mill's productivity and competitiveness and reflects the important role MPR plays within northern Alberta's forest products economy."

Olszewski linked the funding to ongoing trade pressures. "Canada did not choose this trade conflict with the United States, but we will stand up for the workers, businesses and communities under pressure," she said. "This C$20 million investment will help the mill modernize, compete and protect the good jobs that families across the region depend on."

Mercer International is a forest products company with operations in Germany, the United States, and Canada, with consolidated annual production capacity of 2.1 million tonnes of pulp and 1,023 million board feet of lumber, among other products.

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