Mercer International buying Peace River pulp mill
The DMI pulp mill in Peace River, Facebook
Pulp mill workers in Peace River may soon have a new boss. The mill is being sold off as part of a $465 million deal Mercer International has made to buy Daishowa-Marubeni International’s properties in western Canada.
On top of the mill, Mercer would get a 50 per cent interest in the Peace River Logging Corporation and a Limited Partnership joint venture with the Woodland Cree First Nation. The deal also includes 50 per cent ownership of the Cariboo pulp and paper mill in Quesnel, British Columbia.
“I believe all of DMI’s assets have bright futures,” says DMI President Tomoyuki (Steve) Iida. “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.”
“Both the PRP and CPP mills currently have solid operating platforms in place, which can be further enhanced through improved efficiencies and capital improvements,” adds Mercer Chief Executive Officer David M. Gandossi.
Roughly 280 people work at the Peace River location, and Gandossi says Mercer is looking forward to adding them to its team. Operations will continue as normal until the sale closes, which is expected in the fourth quarter of 2018.