Mercer International's Celgar Pulp Mill Took 15-day Maintenance Shutdown

Mercer International's Celgar pulp mill near Castlegar in British Columbia, Canada.

June 7, 2013 - Mercer International today announced that, during this current quarter of 2013, its Celgar mill took its annual scheduled major maintenance shutdown.

As a result of a combination of a lightning strike at the mill and equipment and execution issues, the shutdown, which was planned for 11 days, took 15 days instead, the company said.

Further, the start-up of the mill was slower than budgeted, Mercer noted.

The shutdown and slower start-up resulted in a loss of approximately 30,300 ADMTs (Air-dried Metric Tons) of NBSK pulp production, of which approximately 14,300 ADMTs was unplanned, and a consequential loss of energy production.

Mercer currently estimates that the Celgar mill's shutdown will have an overall negative impact of approximately EURO11 million to its operating income in its second quarter of 2013 results, compared to its first quarter 2013 results.

"We believe the issues with this recent shutdown were isolated and the mill is performing well and operating at pre-shutdown levels," said Jimmy Lee, Mercer International's President and Chairman.

"We believe our current inventory levels are adequate and anticipate no material customer issues from this event," he concluded.

Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, please visit its web site at www.mercerint.com.

SOURCE: Mercer International Inc.