Mercer International to Trim Workforce at Celgar Pulp Mill

The workforce reduction at Mercer's Celgar pulp mill is expected to involve about 85 employees.

July 10, 2013 - Mercer International yesterday announced that, after conducting a comprehensive assessment, its Celgar mill, near Castlegar in British Columbia, Canada, intends to reduce its workforce in order to improve its competitiveness with other pulp producers.

The planned reduction will affect both hourly and salaried employees, Mercer said.

The workforce reduction is expected to involve approximately 85 employees over the next five years, with the majority of employees to be affected over the next 12 months, the company said.

"This action is being taken to make a substantial reduction in fixed costs by bringing personnel levels more in line with other mills operating safely and productively around the world," Mercer said in a press statement.

"It is essential for the long term viability and sustainability of the Celgar mill that it maintains a competitive cost structure compared to other producers in the face of ever increasing costs and other challenges," said Mercer's President and CEO, Jimmy Lee. "A competitive cost structure is also essential to attract the necessary investment capital required to continue to modernize the mill and participate in growing bio-economy opportunities."

According to Mercer, the Celgar mill will continue to operate with an annual capacity of approximately 520,000 air-dried metric tons of market northern bleached softwood kraft pulp and plans to employ approximately 370 employees when the workforce reduction is completed at the end of 2017.

Mercer said it will take appropriate measures to assist employees affected by the workforce restructuring in accordance with applicable agreements, policies and legislation and offer early retirement incentives for senior employees.

Mercer International Inc. is a global pulp manufacturing company. The company operates three modern NBSK pulp mills in Germany and Canada with a consolidated annual production capacity of approximately 1.5 million tonnes and currently employs approximately 1,500 people. For further information, visit www.mercerint.com.

SOURCE: Mercer International Inc.