05:14 PM EDT, 04/02/2024 (MT Newswires) -- West Fraser Timber ( WFG ) edged up in after-hours New York trading after the company on Tuesday said it will become the sole operator of Cariboo Pulp and Paper as Mercer International ( MERC ) withdrew from their 50-50 joint venture.

The company said no payments are due to it or Mercer following the termination of the pulp and paper joint venture, which has the capacity to produce 0.34-million tonnes of "high-quality Northern Bleached Softwood Kraft (NBSK) pulp" annually.

"We acquired our non-core interest in Cariboo Pulp as a result of our acquisition of the Mercer Peace River mill in 2018. After reviewing this asset in light of our strategic priorities, we determined that this dissolution will allow us to redeploy and direct resources to areas that are better aligned with our long-term focus," Mercer chief executive Juan Carlos Bueno said in a release.

Mercer will take a charge against its first-quarter earnings to write down the carrying value of the joint venture.

"Cariboo Pulp is an important member of the West Fraser family of mills. This agreement better positions West Fraser to support the mill and provides ongoing certainty to our talented workforce," West Fraser chief executive Sean McLaren said in a release.

West Fraser shares were last seen up US$0.085 to US$84.94 after hours. They closed down C$1.92 to C$115.24 on the Toronto Stock Exchange.