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West Fraser and Mercer Dissolve Joint Venture in Cariboo Pulp and Paper

Cariboo Pulp and Paper Cariboo Pulp and Paper has the capacity to produce up to 340,000 tonnes of high-quality Northern Bleached Softwood Kraft (NBSK) pulp annually.

April 3, 2024 - West Fraser Timber and Mercer International announced an agreement to dissolve their 50/50 joint venture in Cariboo Pulp and Paper. West Fraser will continue as the sole owner/operator of the mill, doing business as Cariboo Pulp and Paper Company.

Located in Quesnel, British Columbia, Canada, Cariboo Pulp and Paper has the capacity to produce up to 340,000 tonnes of high-quality Northern Bleached Softwood Kraft (NBSK) pulp annually, employing nearly 300 people.

Mercer obtained its 50 perecent stake in Cariboo Pulp and Paper in December of 2018 through its acquisition of Daishowa-Marubeni International, which held the 50 percent interest in the mill.

"Cariboo Pulp is an important member of the West Fraser family of mills," said Sean McLaren, West Fraser's President & CEO. "This agreement better positions West Fraser to support the mill and provides ongoing certainty to our talented workforce."

Commenting on the agreement, Juan Carlos Bueno, Mercer CEO, said, "We acquired our non-core interest in Cariboo Pulp as a result of our acquisition of the Mercer Peace River mill in 2018. After reviewing this asset in light of our strategic priorities, we determined that this dissolution will allow us to redeploy and direct resources to areas that are better aligned with our long-term focus."

No termination or other amounts are payable by either company in connection with the termination of the joint venture. Mercer will retain certain finished product inventory in connection with the transaction.

Mercer expects to recognize a non-cash impairment in the first quarter in connection with the dissolution of the joint venture, based on the net carrying value of such interest.

Cariboo Pulp and Paper is a pillar of the Quesnel forestry community and has been in operation since 1972.

About Mercer International
Mercer International Inc. (NASDAQ: MERC) is a global forest products company with operations in Germany, the United States and Canada with consolidated annual production capacity of 2.3 million tonnes of pulp, 960 million board feet of lumber, 210,000 cubic meters of cross-laminated timber, 45,000 cubic meters of glulam, 17 million pallets and 230,000 metric tonnes of biofuels.

West Fraser (TSX and NYSE: WFG) is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom and Europe. From responsibly sourced and sustainably managed forest resources, West Fraser produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals and renewable energy.

SOURCE: West Fraser Timber Co. Ltd.

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