Mercer International Secures $26.5 Million in Government Support for Peace River Mill and Resumes Operations at Rosenthal Mill Following Temporary Disruption

Mercer International Inc. (Nasdaq: MERC), a global forest products company with operations in Canada, Germany and the United States, has announced approximately $26.5 million in government support for its Peace River pulp mill in Alberta, Canada, while confirming the resumption of operations at its Rosenthal pulp mill in Germany following a temporary operational disruption.

The developments highlight the company's ongoing efforts to modernize its manufacturing facilities, improve operational efficiency and maintain production continuity amid challenging conditions in the global pulp and forest products industry.

Government Support for Peace River Mill Modernization

Mercer secured approximately $26.5 million in government support for its Peace River mill, comprising approximately $13 million in grants and up to $13.5 million in low-interest repayable contributions.

The funding will support projects aimed at improving productivity and modernizing the facility, strengthening the mill's operational capabilities amid ongoing macroeconomic and geopolitical challenges affecting the forest products industry.

The government support was recognized as a $13 million benefit in Mercer's third-quarter 2026 financial results.

The investment forms part of the company's broader initiatives to enhance operational efficiency, improve competitiveness and preserve long-term value across its manufacturing operations.

Rosenthal Mill Resumes Operations Following Temporary Disruption

Separately, Mercer's Rosenthal pulp mill in Germany resumed operations following 24 days of unplanned downtime in the fourth quarter of 2026.

Following a scheduled maintenance shutdown in the third quarter, the facility encountered effluent-treatment issues during its restart process. As a precautionary measure, the company temporarily suspended the restart process and wastewater discharge while working closely with the relevant environmental authorities.

Wastewater discharge subsequently resumed following coordination with the authorities, allowing the facility to restart operations.

The temporary interruption was undertaken as a precautionary measure to address the wastewater-treatment issues and ensure appropriate operational and environmental safeguards.

The development represents the resumption of operations following the temporary disruption, rather than a permanent closure of the facility.

Focus on Operational Efficiency and Modernization

Mercer continues to implement initiatives aimed at improving operating performance, reducing costs and strengthening the efficiency of its manufacturing network.

The company's "One Goal One Hundred" programme generated approximately $22 million in cost savings during the third quarter of 2026, taking cumulative savings to approximately $76 million since its launch in April 2025. Mercer remains on track to achieve its $100 million cost-savings target by the end of 2026.

The company is also continuing to focus on working capital optimization, cash preservation and targeted investments to improve productivity across its operations.