MERCER INTERNATIONAL : http://www.mercerint.com/ : QwikReport
Key Advantages
Modern Low Cost Mills: We operate 3 large-scale, state-of-the-art, low-cost NBSK pulp mills that produce premium kraft pulp. The age and production capacity relative to our peers, gives us manufacturing cost advantages, including lower maintenance costs.
Customer Proximity and Service: As the only market pulp producer in Germany our Rosenthal and Stendal mills are well-situated to serve the largest pulp import market in Europe. Close proximity to most of our European customers means lower transport costs compared to our competitors. The Celgar mill in BC is well placed to serve Asian and North American customers. Our reputation as a world-class supplier was established by first-class customer service and our ability to deliver high quality pulp on a timely basis.
Advantageous Capital Investments and Financing: Our German mills are eligible to receive government grants in respect of qualifying capital investments. Over the last decade, the German mills have received approximately €383.0 million of these government grants which have been recorded as reductions in the cost basis of the assets purchased.
Renewable and Surplus Energy: The modern technology of our mills allows for the generation of electricity and steam and is generally self-sufficient. The energy produced is primarily produced from black liquor and wood residuals which are both renewable carbon neutral sources. Our German mills have also benefited from the sales of emission allowances. All of our mills generate surplus energy which is sold to third parties, further reducing operating costs.
Competitive Fiber Supply: Despite the cyclical nature of fiber with respect to price and supply, our mills are located close to high-quality fiber supplies. The supply, along with our purchasing power, allow us to enter into contracts and arrangements which have generally provided us with a competitively priced fiber supply.