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Mercer considers entering pellet trade

15.05.2014 − 

The Canadian pulp manufacturer Mercer International is currently looking into options for entering the market for ENplus pellets through its German subsidiary ZPR. In this vein ZPR has contacted several pellet manufacturers in Central Europe in the last couple of days, asking for offers on a purchase quantity of at least 5,000 t ENplus or DINplus pellets each during the months of June, July, August and September. ZPR intends to initially store the pellets in external intermediate storage facilities or to directly use manufacturers’ storage capacities in order to further market the pellets in the course of the winter of 2014/2015. Initially the regional focus is to be put on the German-speaking countries, especially on Germany. Mercer is not planning to use the pellets in its biomass power plants in Blankenstein or Stendal. According to ZPR, the company’s potential entry into the pellet trade is regarded a supplement to the existing operations in the pulp and paper industry. Synergies are thus primarily expected in national and international logistics. Therefore, the company also considers expanding the pellet business to North American supply markets, for example through the Canadian parent company.

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