Mercer International Inc. has determined to proceed with a Phase II expansion and optimization project at its Friesau sawmill in Germany.
Mercer International currently estimates that capital expenditures will total approximately Euro 37.5 million and that the project will be completed in or about the 2Q 2020. The project is in addition to the Company's previously announced Phase I project at the Friesau facility, involving the installation of a new planer line.
David M. Gandossi, President and CEO, stated: "We are pleased to announce this Phase II expansion and optimization at our Friesau facility, which we believe furthers our strategic expansion into lumber production. Based on the estimated cost and timing of the project, we believe this is a high-return project and an excellent opportunity to enhance shareholder value. The expansion of annual production capacity by 200 million board feet is roughly equivalent to the size of a new sawmill in the U.S. South. "
Mercer International Inc. is a global forest products company with operations in Germany and Canada.