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Update: Fire at Mercer Stendal Pulp Mill

NEW YORK (News release) -- Mercer International, provides the following update to its press release of July 1, 2022 regarding a fire which occurred in the wood chip storage area at our Stendal pulp mill.

Currently, the fire has been primarily extinguished but as is customary in such cases, the site will be monitored for hot spots for several more days. The fire did not damage the mill operations and the damage appears to have been confined to the wood chip storage bunkers and associated conveying systems. The Company will, as permitted by site monitoring measures, conduct a more formal detailed assessment of damage and required repairs and develop a restart plan. Until such assessment and plan, there can be no assurance as to when the mill will recommence operations.

The Company maintains property and business interruption insurance for the Stendal pulp mill and we expect the property damage and business interruption will be covered by such insurance, subject to customary deductibles and limits.

ORIGINAL RELEASE

NEW YORK (News release) -- Mercer International Inc. has announced that a fire has occurred in the woodyard at its Stendal, Germany pulp mill on July 1.

We currently believe that there have been no injuries, and that mill personnel and local communities are not in danger. We are currently assessing the damage which appears to be isolated to the woodchip storage area and conveyor equipment. Due to the initial and ongoing containment activities we have commenced shutdown procedures and will be curtailing pulp production.

More information will be forthcoming as our assessment develops.

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