According to Mercer International, who operates the Stendal pulp mill in Eastern Germany, the fire that occurred in the wood chip storage area has been primarily extinguished but as is customary in such cases, the site will be monitored for hot spots for several more days. The fire did not damage the mill operations and the damage appears to have been confined to the wood chip storage bunkers and associated conveying systems. The Company will, as permitted by site monitoring measures, conduct a more formal detailed assessment of damage and required repairs and develop a restart plan. Until such assessment and plan, there can be no assurance as to when the mill will recommence operations.
The Company maintains property and business interruption insurance for the Stendal pulp mill and we expect the property damage and business interruption will be covered by such insurance, subject to customary deductibles and limits.