Mercer Celgar in the valley along the Nelson River in British Columbia, Canada.

Supporting Modernization and Upgrading of Forest Fibre Processing at British Columbia Pulp Facility

News release

June 16, 2021    Castlegar, British Columbia    Natural Resources Canada

The Government of Canada is building a clean energy future and supporting workers in the natural resource sectors — including finding innovative ways to increase the use of underutilized forest fibre sources.

Marc G. Serré, Parliamentary Secretary to the Minister of Natural Resources, the Honourable Seamus O’Regan Jr., today announced $4.5 million to Mercer Celgar Limited Partnership, a company based in Castlegar, British Columbia, to deploy innovative technology and processes that improve fibre processing and address regional fibre availability issues in British Columbia.

The project deploys a first-of-its-kind, high-capacity and low-operating-cost stationary flail debarker at the mill. This new flail debarker removes bark from wood that would previously end up as debris after the harvesting process. This will reduce the amount of forest waste and lower emissions from decreased forest residue burning.

Funding for this project is provided through the Investments in Forest Industry Transformation program, which encourages the Canadian forest sector to adopt innovative technologies and processes to establish new product streams and emerging markets.

Budget 2021 announced up to $54.8 million over two years, starting in 2021–2022, to increase the capacity of this program. By investing in innovative forest sector technologies, the forest sector is providing greener solutions that help tackle climate change and transition to a low-carbon economy while increasing its competitiveness on a national and global scale.

Canada’s forest sector is a major employer of Canadians, including Indigenous Peoples, in rural and remote communities. A competitive and resilient forest sector is essential to communities and workers across the country.


“The forestry sector is innovating, finding new ways to reduce forest waste and developing new products for Canadians. This project that will create jobs and lower emissions. And that’s how we get to net zero.”

The Honourable Seamus O’Regan Jr.
Minister of Natural Resources

“Pulp mills in British Columbia are working to extract the maximum benefit from forest fibre while also improving sustainability. It’s great to see innovative companies in Canada’s forest sector that are able to upgrade their operations in order to further increase efficiency and reduce emissions.”

Marc G. Serré
Parliamentary Secretary to the Minister of Natural Resources
Member of Parliament for Nickel Belt

“With this support from the Government of Canada, Mercer Celgar is putting in place one more piece of the sustainability puzzle as we rise to meet the challenge of climate change. This new wood room allows Mercer to continue its leadership position in the 21st-century bioeconomy by making full and efficient use of our valuable forest resources. In addition, this investment further supports sustainability initiatives that will enhance social, economic and environmental benefits for our communities.”

David Gandossi
President and CEO, Mercer Celgar

Photo L-R: Marc G. Serré, Parliamentary Secretary to the Minister of Natural Resources, David M. Gandossi, President and CEO Mercer International Inc., and William “Bill” MacPherson, Managing Director, Mercer Celgar

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