The funding provides capital to support Mercer Peace River Pulp's broader transformation plan, designed to improve productivity and modernize the mill.
Aug 27, 2026 - Mercer International Inc. announced that the Government of Canada, through Prairies Economic Development Canada ("PrairiesCan"), has committed C$20 million (approximately US$14 million) in financial support to its subsidiary, Mercer Peace River Pulp Ltd. ("MPR"), under the Regional Tariff Response Initiative.
The support consists of a C$1 million non-repayable contribution and a C$19 million repayable contribution, with repayment scheduled to commence in 2031, subject to the terms of the contribution agreement. The funding was announced on Aug. 26 by The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for PrairiesCan, during a visit to the MPR mill in northern Alberta.
The funding provides capital to support MPR's broader transformation plan, designed to improve productivity and modernize the mill. This includes improvements to prepare the facility for the expansion of bio-energy production and carbon capture and storage. The funding builds on work already underway at the mill, including the carbon dioxide capture demonstration unit.
"This investment is an important step in the continued modernization of Mercer Peace River," stated 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. I also want to recognize the work of our Peace River team in advancing these improvements."
The Peace River mill is located in the boreal forest region of Peace River, Alberta, Canada, approximately 500 km north of Edmonton. Mercer Peace River's pulp mill operations began in 1990 and produce both softwood (NBSK) and hardwood (NBHK) pulp. The majority of the mill's pulp sales are made to North American customers, while the remainder is shipped to Asian and European markets.
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 2.1 million tonnes of pulp, 1,023 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.
SOURCE: Mercer International Inc.