Mercer International NASDAQ:MERC $5.37
Mercer International
Our Product
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Our Product

Our mills manufacture high quality NBSK pulp from wood chips and pulp logs.NBSK pulp is valued for its reinforcement characteristics in a wide range of premium paper-based products. Our product possesses the main attributes that our customers are looking for to serve their specific end use: long, strong fibers that are key in reinforcing the end product, high grade whiteness, and strength.

Mercer has become a leading global supplier of top-quality market NBSK pulp in the last few years. As the owner and operator of three of the world's newest and largest NBSK pulp mills, we are strategically positioned to serve customers in Europe, North America and Asia. Our Celgar mill located in Castlegar, BC serves our North American and Asian customers. As Germany's only market kraft pulp producer, our two mills in Germany are well-positioned to serve customers in southern and northern Europe, fulfilling pulp orders within days of placement. Mercer has become a supplier of choice, offering long-term viability, a consistently high quality product and superior customer service.

NBSK pulp is produced from high quality, slow growing / long fiber, northern softwood tree species utilizing a sulphate (kraft) cooking process. NBSK is considered the highest grade of kraft pulp and generally obtains the highest price. End users utilize NBSK for the strength properties of its long fibers and its brightness. These premium properties provide strength in products such as tissues and light weight coated papers, which are not only valued by consumers but also by paper makers who are able to run their paper machines faster. NBSK is typically a small percentage of the total pulp required in the recipe to make certain paper products. It can be thought of as a complimentary pulp to lower quality Southern Hemisphere Eucalyptus as it allows paper makers to produce premium products at the lowest possible cost.

NBSK End Uses 2003 versus 2007


Source: Pöyry Forest Industry Consulting Oy


All three mills are able to generate more electricity than they consume, allowing the excess green energy that is generated to be sold. Our Stendal and Rosenthal facilities have been generating and selling green, renewable energy since their inception with 159 MW of installed capacity. In June 2008, the German government amended the country's Renewable Energy Resources Act, which has provided better pricing for the mills' green power. In 2007, the Celgar mill achieved a major milestone and joined the two German mills in producing more electricity than it consumed. Upon completion of Celgar's Green Energy Project, Mercer's total installed generating capacity will increase to approximately 260 MW, increasing further the quantity of green energy available for sale.

We have established a major presence in Europe by continuing to emphasize our world-class, modern equipment and professional, focused approach to the market. Long-term partnerships have been forged with our customers by consistently supplying high quality pulp in guaranteed volumes. We meet our customers' stringent reinforcement requirements by capitalizing on our operations' high quality fiber base, and producing a distinct brand of pulp.

As a result, we are ideally positioned to continue our growth strategy in lightweight printing and writing papers and personal hygiene products to meet increasing global demand. Our overall European approach has been to develop a market that will accept the pulp from both German mills by differentiating customers and the pulps they prefer. Our Celgar mill is well-positioned to continue to capitalize on the fast growth in Asia, particularly in China, and be able to accommodate the stringent quality specification demands in those markets. We are also becoming a supplier of choice for large North American customers who value our modern approach and facilities.

We have a global sales and marketing team that handles sales to over 140 customers. As a result of the close proximity of our mills to customers and our global platform, we can service our customers on a worldwide basis.  
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