Mercer International Sells Remaining Paper Mill in Germany
Nov. 16, 2006 - Mercer International today said it has divested its last remaining paper mill and intends to focus exclusively on the manufacture and sale of pulp.
Jimmy S.H. Lee, Mercer's CEO, said, "This transaction completes our strategy of exiting the paper business to focus on our core competency of pulp. Although the Fahrbrucke mill had attempted to focus on high margin products, the small capacity of its paper machine did not permit it to make a satisfactory contribution."
Mercer's Fahrbrucke mill in Germany produces both specialty and printing papers and has an annual production capacity of about 40,000 tonnes.
"We are pleased to complete this divestment on terms which control and quantify our cash costs, preserves the tax attributes of the prior business and results in the mill being acquired by new owners who are committed to maintaining the assets, including ongoing employment for workers," Lee added
SOURCE: Mercer International