Mercer International Inc. (Mercer) operates in the pulp business and is the producer of market northern bleached softwood kraft (NBSK) pulp. The Company�s operations are located in Eastern Germany and Western Canada. The Company produces pulp for resale, which include market pulp in Germany. The Company operates three NBSK pulp mills with a consolidated annual production capacity of approximately 1.5 million air-dried metric tons. The mills include Rosenthal mill, Celgar mill and Stendal mill. The mills constitute to the Company�s individual pulp mills segment. The Company manufactures and sells NBSK pulp produced from wood chips and pulp logs. During the year ended December 31, 2011, the Company�s mills generated 652,113 megawatt hours, 520,005 megawatt hours and 478,674 megawatt hours, respectively, of surplus energy, primarily from a renewable carbon-neutral source. During the year ended December 3, 2011, it sold 652,113 megawatt hours and 520,005 megawatt hours of surplus energy.