Canadian pulp manufacturer Mercer International has agreed to buy one of Germany’s largest sawmills and a biomass power plant.

Mercer International will acquire the Friesau facility for around CAN$55.1 million (€39.7m) plus defined working capital of approximately $9 million.

Mercer International did not disclose the owner of the facility in its press statement.

According to Mercer, the Friesau facility has the following features:

  • Has an annual production capacity of approximately 550 million board feet (mmfbm) on a continuously operating basis and 465 million mmfbm on a customary three-shift operating basis;
  • Includes a modern biomass fuelled cogeneration power plant, built in 2009, with an annual production capacity of approximately 13MW of electricity and 49.5MW of thermal energy. The plant sells electricity pursuant to a long-term fixed price green power tariff that runs to 2029;
  • Includes two log de-barking and sorting lines, two Linck primary breakdown lines, lumber kilns capable of matching sawmill production, and a two-line planer mill;
  • Has an experienced workforce of approximately 300 employees; and
  • Is located approximately 16 kilometers west of our Rosenthal mill and has historically been one of its largest fiber suppliers.

CEO David M. Gandossi said: “We are pleased to enter the European lumber sector, with the acquisition of one of Germany’s largest sawmills. The proposed acquisition also expands our existing presence in the bio-mass based electricity market and is in line with our long-term growth objectives.

“This acquisition leverages our core competencies of wood procurement, production optimization and green energy production. We believe it presents a natural fit with our existing procurement activities and our expertise in bio-mass based electricity production.”

“We look forward to welcoming the Friesau facility’s employees to our team and working with them as we integrate its operations.”