DENVER, Colo. (247marketnews.com) -- Mercer International (NASDAQ:MERC) just received a meaningful vote of confidence from the Canadian government, with C$20 million (approximately US$14 million) committed to Mercer Peace River Pulp in northern Alberta. The funding consists of C$1 million that is non-repayable and C$19 million that is repayable beginning in 2031, giving Mercer capital to modernize the mill while deferring repayment for several years.
The timing is particularly important. Mercer has been operating against a difficult backdrop: its second-quarter 2026 results showed negative $21 million of Operating EBITDA and a $76 million net loss, while management has been pursuing cost reductions, restructuring and balance-sheet improvements. The company said its “One Goal One Hundred” program had generated approximately $54 million of cumulative cost savings and operational efficiencies through the second quarter. Against that backdrop, the Peace River financing provides targeted capital for productivity improvements rather than simply plugging an operating hole.
The government says the investment will support upgrades intended to reduce production costs, improve output and lower emissions, while helping the mill shift toward a more profitable mix of hardwood and softwood pulp. It also creates a pathway for future expansion of bioenergy production and carbon capture and storage, building on a carbon-dioxide capture demonstration unit already operating at the facility. The federal government says the mill directly employs about 360 people and supports approximately 3,000 jobs across Alberta's forest-sector supply chain.
For Mercer, the strategic value may extend beyond the C$20 million headline. The Peace River mill is being positioned as a more productive and diversified asset at a time when Canadian forestry companies are dealing with substantial trade pressure and changing global markets. CEO Juan Carlos Bueno called the funding “an important step in the continued modernization of Mercer Peace River,” saying it supports productivity and competitiveness. Mercer also has a 10-day planned maintenance shutdown scheduled for September 7–17, expected to reduce production by approximately 15,000 air-dried metric tonnes, as part of ongoing reliability and equipment work.
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