Mercer International to acquire DMI kraft pulp mills for $465M

P&PC Staff
October 04, 2018
By P&PC Staff
October 4, 2018 – Mercer International has signed a deal to acquire Daishowa-Marubeni International (DMI)'s mill properties in Western Canada for $465 million.

The shareholders of DMI, Nippon Paper Industries Co., Ltd. and Marubeni Corporation will sell all DMI shares to Mercer, including assets for the Peace River pulp mill in Peace River, Alberta, a 50 per cent ownership of the Cariboo pulp and paper mill in Quesnel, British Columbia, and a 50 per cent interest in the Peace River Logging Corporation and associated Limited Partnership, a joint venture with the Woodland Cree First Nation.

“I believe all of DMI’s assets have bright futures," says Tomoyuki (Steve) Iida, DMI president. "The mills have reliable access to fibre and are well-situated to serve multiple markets. Most importantly, our workforce operating these mills, logging operations and providing corporate administrative services are well experienced and highly skilled.”

Mercer, one of the world's largest producers of NBSK pulp, says the deal will allow for a 41 per cent increase in pulp production. DMI's total annual production capacity is approximately 648,500 ADMT premium-grade NBSK and NBHK market pulp.

The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions. Operations will continue as scheduled under DMI’s management until the transaction is closed.

Add comment

Disclaimer
Note: By submitting your comments you acknowledge that Pulp and Paper Canada has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

Most Popular

Latest Events

BIOFOR International 2019
February 4-7, 2019
PaperWeek Canada 2019
February 4-7, 2019
Paper2019
March 24-26, 2019
PaperCon 2019
May 5-8, 2019

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.