UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

        [ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                                       OR

        [   ]    TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE TRANSITION PERIOD FROM      TO
                                               ----     ----

                         COMMISSION FILE NO.: 000-09409

                            MERCER INTERNATIONAL INC.
             (Exact name of Registrant as specified in its charter)

             WASHINGTON                                 91-6087550
      (State or other jurisdiction                    (I.R.S. Employer
      of incorporation or organization)               Identification No.)

        GIESSHUBELSTRASSE 15, ZURICH, SWITZERLAND              CH 8045
         (Address of principal executive offices)            (Zip Code)

                                 41(1) 201 7710
              (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the Registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.   YES   X      NO
                                              ----        ----

The  Registrant  had  16,794,899 shares of beneficial interest outstanding as at
November  12,  2001.


<PAGE>


                         PART I.  FINANCIAL INFORMATION
                                  ---------------------

ITEM  1.     FINANCIAL  STATEMENTS




                            MERCER INTERNATIONAL INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001

                                  (UNAUDITED)


<PAGE>


                            MERCER INTERNATIONAL INC.
                           CONSOLIDATED BALANCE SHEETS
                 AS AT SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>


                                        SEPTEMBER 30,    DECEMBER 31,
                                            2001             2000
                                       ---------------  --------------
<S>                                    <C>              <C>
                         ASSETS
Current Assets
  Cash and cash equivalents            $       18,393   $      18,496
  Investments                                   5,285           5,320
  Receivables                                  39,916          46,088
  Inventories                                  14,550          19,977
  Prepaid and other                             2,497           3,000
                                       --------------   -------------
    Total current assets                       80,641          92,881

Long-Term Assets
  Cash restricted                              22,498          25,150
  Properties                                  246,712         265,607
  Investments                                   7,713           6,101
  Notes receivable                                  -           4,296
  Deferred income tax                           9,353           9,624
                                       --------------   -------------
                                              286,276         310,778
                                       --------------   -------------
                                       $      366,917   $     403,659
                                       ==============   =============

                       LIABILITIES
Current Liabilities
  Accounts payable and accrued
    expenses                           $       33,099   $      37,058
  Pulp mill renovation costs
    payable                                       193           1,146
  Note payable                                    782             839
  Debt                                         10,380          27,173
                                       --------------   -------------
    Total current liabilities                  44,454          66,216

Long-Term Liabilities
  Debt                                        191,533         208,315
  Other                                         3,339           3,721
                                       --------------   -------------
                                              194,872         212,036
                                       --------------   -------------
    Total liabilities                         239,326         278,252

             SHAREHOLDERS' EQUITY
Shares of beneficial interest                  99,995          99,995
Retained earnings                              93,371          88,698
Accumulated other comprehensive
  loss                                        (65,775)        (63,286)
                                       --------------   -------------
                                              127,591         125,407
                                       --------------   -------------
                                       $      366,917   $     403,659
                                       ==============   =============


</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

           CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
                FOR NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)
              (DOLLARS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)


<TABLE>
<CAPTION>


                                               2001        2000
                                             --------    --------
<S>                                          <C>         <C>
Revenues
  Sales                                      $143,513    $175,597
  Other                                        12,069       5,572
                                             --------    --------
                                              155,582     181,169
Expenses
  Cost of sales                               125,115     142,871
  General and administrative                   13,216       8,591
  Interest expense                             10,895      10,560
  Loss on foreign currency
    derivative contracts                          731           -
  Litigation claim                                918           -
                                             --------    --------
                                              150,875     162,022
                                             --------    --------

Income before income taxes                      4,707      19,147
Income taxes                                       34           6
                                             --------    --------

Net income                                      4,673      19,141

Retained earnings, beginning
  of period                                    88,698      59,224
                                             --------    --------

Retained earnings, end of period             $ 93,371    $ 78,365
                                             ========    ========

Earnings per share
  Basic                                      $   0.28    $   1.14
                                             ========    ========
  Diluted                                    $   0.27    $   1.11
                                             ========    ========


</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

           CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
               FOR THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)
              (DOLLARS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)


<TABLE>
<CAPTION>


                                               2001        2000
                                             --------    --------
<S>                                          <C>         <C>
Revenues
  Sales                                       $42,693    $60,779
  Other                                         4,583        915
                                              -------    -------
                                               47,276     61,694
Expenses
  Cost of sales                                39,874     45,795
  General and administrative                    4,738      3,340
  Interest expense                              3,391      3,450
  Gain on foreign currency derivative
    contracts                                  (1,822)         -
  Litigation claim                                918          -
                                              -------    -------
                                               47,099     52,585
                                              -------    -------

Income before income taxes                        177      9,109
Income taxes                                        8         15
                                              -------    -------

Net income                                        169      9,094

Retained earnings, beginning of period         93,202     69,271
                                              -------    -------

Retained earnings, end of period              $93,371    $78,365
                                              =======    =======

Earnings per share
  Basic                                       $  0.01    $  0.54
                                              =======    =======
  Diluted                                     $  0.01    $  0.52
                                              =======    =======


</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                FOR NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>


                                              2001       2000
                                            --------   ---------
<S>                                         <C>        <C>

Net income                                  $ 4,673    $19,141

Other comprehensive income (loss):
  Foreign currency translation adjustments   (3,992)   (13,771)
  Unrealized gain (loss) on securities        1,503     (1,037)
                                            -------   --------

  Other comprehensive loss                   (2,489)   (14,808)
                                            -------    -------

Total comprehensive income                  $ 2,184    $ 4,333
                                            =======    =======

</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
               FOR THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>


                                              2001      2000
                                             -------  --------
<S>                                          <C>      <C>

Net income                                   $  169   $ 9,094

Other comprehensive income (loss):
  Foreign currency translation adjustments    9,012    (7,723)
  Unrealized loss on securities                 (15)     (415)
                                             ------   -------

  Other comprehensive income (loss)           8,997    (8,138)
                                             ------   -------

Total comprehensive income                   $9,166   $   956
                                             ======   =======


</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>



                                                             2001       2000
                                                           --------   --------
<S>                                                        <C>        <C>
Cash Flows from Operating Activities:
  Net income                                               $  4,673   $ 19,141
  Adjustments to reconcile net income from
    operations to cash
      Depreciation and amortization                          15,506     19,753

  Changes in current assets and liabilities
    Investments                                                (789)   (28,964)
    Inventories                                               4,723        858
    Receivables                                               6,248     (2,195)
    Accounts payable and accrued expenses                    (4,051)     1,456
    Other                                                       369       (611)
                                                           --------   --------
        Net cash provided by operating activities            26,679      9,438

Cash Flows from Investing Activities:
  Decrease in notes receivable, net                           4,296         11
  Purchase of available-for-sale investments                   (569)      (859)
  Purchase of fixed assets, net of investment grants         (5,058)    30,972
  Proceeds from sale of properties                                -      8,892
  Other                                                          58          -
                                                           --------   --------
        Net cash provided by (used in) investing
          activities                                         (1,273)    39,016

Cash Flows from Financing Activities:
  Cash restricted                                             1,834          -
  Increase in indebtedness                                        -      5,768
  Decrease in indebtedness                                  (25,923)    (5,682)
  Net proceeds on issuance of shares of
    beneficial interest                                           -        957
  Decrease in pulp mill conversion costs payable               (902)   (48,792)
                                                           --------   --------
        Net cash used in financing activities               (24,991)   (47,749)

Effect of exchange rate changes on cash and
  cash equivalents                                             (518)      (542)
                                                           --------   --------

Net increase (decrease) in cash and cash equivalents           (103)       163

Cash and cash equivalents, beginning of period               18,496      1,722
                                                           --------   --------
Cash and cash equivalents, end of period                   $ 18,393   $  1,885
                                                           =========  =========


</TABLE>


The accompanying notes are an integral part of these financial statements.


<PAGE>


                            MERCER INTERNATIONAL INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    FOR NINE MONTHS ENDED SEPTEMBER 30, 2001
                                   (UNAUDITED)

NOTE  1.     BASIS  OF  PRESENTATION

The  interim  period  consolidated financial statements contained herein include
the  accounts of Mercer International Inc. and its subsidiaries (the "Company").

The  interim  period consolidated financial statements have been prepared by the
Company  pursuant  to  the  rules  and  regulations  of  the U.S. Securities and
Exchange  Commission  (the  "SEC").  Certain information and footnote disclosure
normally  included  in  financial  statements  prepared  in  accordance  with
accounting  principles  generally  accepted  in  the  United  States  have  been
condensed or omitted pursuant to  such  SEC rules and regulations.  The interim
period  consolidated  financial  statements should  be  read  together with the
audited consolidated financial statements  and accompanying  notes  included in
the Company's latest annual report  on  Form 10-K for  the  fiscal  year  ended
December 31, 2000. In the opinion of the  Company,  the  unaudited  consolidated
financial  statements  contained  herein  contain  all adjustments  necessary to
present a fair statement of the results of the interim periods  presented.

NOTE  2.     EARNINGS  PER  SHARE

Basic  earnings  per  share  is  computed by dividing income available to common
shareholders  by  the  weighted  average  number  of shares outstanding during a
period.  Diluted  earnings per share takes into consideration shares outstanding
(computed  under basic earnings per share) and potentially dilutive shares.  The
weighted  average  number  of shares outstanding for the purposes of calculating
basic earnings per share was 16,874,899 and 16,763,538 for the nine months ended
September 30, 2001 and 2000, respectively, and 16,874,899 and 16,808,769 for the
three  months  ended  September  30,  2001  and 2000, respectively. The weighted
average  number  of  shares  outstanding for the purposes of calculating diluted
earnings  per  share  was  17,181,616  and  17,207,610 for the nine months ended
September 30, 2001 and 2000, respectively, and 17,236,295 and 17,368,786 for the
three  months  ended  September  30,  2001  and  2000,  respectively.

NOTE  3.     ACCOUNTING  FOR  DERIVATIVE  INSTRUMENTS  AND  HEDGING  ACTIVITIES

Statement  of  Financial  Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative  Instruments  and  Hedging  Activities",  established  accounting and
reporting standards for derivative instruments and hedging activities.  SFAS No.
133  was  amended  by  SFAS  No. 137, "Accounting for Derivative Instruments and
Hedging  Activities - Deferral of the Effective Date of FASB Statement No. 133",
which  deferred  the  implementation  date of SFAS 133 to fiscal years beginning
after  June  15,  2000.  Retroactive  application  is  prohibited.


<PAGE>


The  Company adopted SFAS No. 133 effective from January 1, 2001. All derivative
instruments  are  measured  at  fair  value and reported in the balance sheet as
assets  or  liabilities. Accounting for gains and losses depends on the intended
use of the derivative instrument. Gains and losses on derivative instruments not
designated  as  hedging  instruments are recognized in earnings in the period of
the  change  in  fair  value.  Accounting  for  gains  and  losses on derivative
instruments  designated as hedging instruments depends on the type of hedge, and
such  gains  and losses are recognized in either earnings or other comprehensive
income.

NOTE  4.     BUSINESS  SEGMENT  INFORMATION

The  Company  operates  in two reportable business segments: pulp and paper. The
segments  are  managed  separately  because  each  business  requires  different
production  and  marketing  strategies.

Summarized  financial  information  concerning  the  segments  is  shown  in the
following  tables:


<TABLE>
<CAPTION>


                                                  PULP      PAPER    TOTAL
                                                  ----      -----    -----
<S>                                             <C>        <C>      <C>
NINE MONTHS ENDED SEPTEMBER 30, 2001
Sales to external customers                     $102,157   $41,356  $143,513
Intersegment net sales                             4,277         -     4,277
Segment profit                                     7,937     1,162     9,099

Reconciliation of profit:
  Total profit for reportable segments                              $  9,099
  Elimination of intersegment profits                                    602
  Unallocated amounts, other corporate expenses                       (4,994)
                                                                    --------

      Consolidated income before income taxes                       $  4,707
                                                                    ========

NINE MONTHS ENDED SEPTEMBER 30, 2000
Sales to external customers                     $110,766   $64,831  $175,597
Intersegment net sales                               712         -       712
Segment profit                                    18,713     1,894    20,607

Reconciliation of profit:
  Total profit for reportable segments                              $ 20,607
  Elimination of intersegment profits                                    908
  Unallocated amounts, other corporate expenses                       (2,368)
                                                                   ---------

      Consolidated income before income taxes                       $ 19,147
                                                                    ========


</TABLE>


<PAGE>


<TABLE>
<CAPTION>


                                                 PULP      PAPER    TOTAL
                                                 ----      -----    -----
<S>                                            <C>        <C>       <C>

THREE MONTHS ENDED SEPTEMBER 30, 2001
Sales to external customers                    $29,999    $12,694   $42,693
Intersegment net sales                           1,041          -     1,041
Segment profit                                   1,433        376     1,809

Reconciliation of profit:
  Total profit for reportable segments                              $ 1,809
  Elimination of intersegment profits                                     -
  Unallocated amounts, other corporate expenses                      (1,632)
                                                                    -------

      Consolidated income before income taxes                       $   177
                                                                    =======

THREE MONTHS ENDED SEPTEMBER 30, 2000
Sales to external customers                    $40,666    $20,113   $60,779
Intersegment net sales                             360          -       360
Segment profit                                   8,099        664     8,763

Reconciliation of profit:
  Total profit for reportable segments                              $ 8,763
  Elimination of intersegment profits                                   908
  Unallocated amounts, other corporate expenses                        (562)
                                                                    -------

      Consolidated income before income taxes                        $9,109
                                                                    ========


</TABLE>


<PAGE>


ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL
          CONDITION  AND  RESULTS  OF  OPERATIONS

Mercer  International  Inc.  is  a pulp and paper company and its operations are
primarily  located  in  Germany.  The  following  discussion and analysis of the
results of operations and financial condition of the Company for the nine months
and three months ended September 30, 2001 should be read in conjunction with the
consolidated  financial  statements and related notes included elsewhere herein.
In  this  document:  (i)  unless  the  context otherwise requires, the "Company"
refers  to Mercer International Inc. and its subsidiaries; and (ii) a "tonne" is
one  metric  ton  or  2,204.6  pounds.

Based  upon  period  average  exchange  rates,  the  U.S.  dollar appreciated by
approximately 5.0% and 1.3% against the deutschmark in the nine months and three
months,  respectively, ended September 30, 2001, compared to the same periods of
2000.

RESULTS  OF  OPERATIONS  -  NINE  MONTHS  ENDED  SEPTEMBER  30,  2001

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:


<TABLE>
<CAPTION>


                                 NINE MONTHS ENDED SEPTEMBER 30,
                                 -------------------------------
                                    2001                 2000
                                 ----------           ----------
                                           (UNAUDITED)
                                          (IN THOUSANDS)
<S>                               <C>                  <C>
SALES BY PRODUCT CLASS
Packaging papers(1)              $      -             $  8,758
Specialty papers                   25,075               25,374
Printing papers(2)                 16,281               30,699
Pulp                              102,157              110,766
                                 --------             --------
Total(3)                         $143,513             $175,597
                                 ========             ========

SALES BY GEOGRAPHIC AREA
Germany                          $ 66,439             $ 71,108
European Union(4)                  49,736               61,906
Eastern Europe and other           27,338               42,583
                                 --------             --------
Total(3)                         $143,513             $175,597
                                 ========             ========

SALES BY VOLUME                             (TONNES)
Packaging papers(1)                     -               29,111
Specialty papers                   30,320               31,255
Printing papers(2)                 20,666               44,427
Pulp                              216,019              183,027
                                 --------             --------
Total(3)                          267,005              287,820
                                 ========             ========


<FN>


-------------------
(1)     The  Company sold its packaging paper mill in Trebsen, Germany effective
        June  2000.
(2)     The Company sold its printing paper mill in Hainsberg, Germany effective
        November  2000.
(3)     Excluding  intercompany  sales.
(4)     Not  including  Germany.


</TABLE>


<PAGE>


In the nine months ended September 30, 2001, revenues decreased by approximately
14.1%  to  $155.6 million from $181.2 million in the nine months ended September
30,  2000,  primarily  as a result of lower pulp prices and lower paper sales in
the  current  period.  The  decrease  in  revenues  in  the  current  period was
partially  offset by higher pulp volumes.  In the current period, pulp and paper
revenues decreased by approximately 18.3% from the comparable period of 2000, on
a  7.8%  decrease  in  pulp  sales and a 36.2% decrease in paper sales resulting
primarily  from  the  sale  of  the  Company's  packaging paper mill in Trebsen,
Germany  effective  June  2000  and  printing  paper  mill in Hainsberg, Germany
effective  November  2000.

Pulp  sales  in  the  nine  months  ended September 30, 2001 decreased to $102.2
million  from  $110.8  million  in  the  comparable period of 2000, as weakening
demand  and  high  producer inventory levels lead to a marked decline in prices.
List prices for kraft pulp in Europe decreased from approximately $710 per tonne
at  the  end of 2000 to approximately $650 per tonne during the first quarter of
2001,  approximately  $530  per  tonne  during  the  second  quarter of 2001 and
approximately  $460  per tonne during the third quarter of 2001.  Primarily as a
result  of  producer  downtime,  the  continuing  erosion  in  kraft pulp prices
steadied  in  the  third quarter of 2001 and producers have announced a marginal
price  increase  for  the  fourth  quarter  of  2001.

Paper  sales  in  the  nine  months  ended September 30, 2001 decreased to $41.4
million from $64.8 million in the comparable period of 2000.  Sales of specialty
papers  decreased  slightly in the nine months ended September 30, 2001 compared
to  the nine months ended September 30, 2000 as a result of lower sales volumes,
while sales of printing papers declined primarily as a result of the sale of one
of  the Company's printing paper mills effective November 2000.  The Company did
not sell any packaging papers during the nine months ended September 30, 2001 as
a result of the divestiture of its packaging paper mill effective June 2000.  On
average, prices for specialty and printing papers realized by the Company in the
nine  months ended September 30, 2001 increased by approximately 1.9% and 14.0%,
respectively,  compared  to  the  same  period  in  2000.

Expenses decreased to $150.9 million in the nine months ended September 30, 2001
from  $162.0  million in the comparable period of 2000, primarily as a result of
lower  paper  sales  and an improvement in pulp production efficiency due to the
ramping-up  of  pulp  production  in  early 2000. On average, the Company's unit
fibre  costs  for  pulp  production  in the nine months ended September 30, 2001
increased by approximately 8.6% compared to the same period in 2000.  Prices for
waste  paper,  which  currently comprises approximately 25% of the fibre for the
Company's  paper  mills,  also  increased in the nine months ended September 30,
2001,  compared  to  the  same  period  of  2000.

General  and  administrative  expenses  increased  to  $13.2 million in the nine
months  ended  September  30,  2001  from  $8.6 million in the nine months ended
September  30,  2000,  primarily  due to higher professional fees in the current
period  and  an exchange gain in the comparative period. Interest expense in the
current  period  increased to $10.9 million from $10.6 million in the comparable
period  of  2000,  primarily  as a result of the payment of government guarantee
fees  and  higher interest rates in connection with the entering into of foreign
currency  forward  rate  swaps relating to the Company's bank loans. The Company
recorded  a loss of $0.7 million on its foreign currency derivative contracts in
the  nine  months  ended  September  30,  2001.  See  "Item  3. Quantitative and


<PAGE>


Qualitative  Disclosures  About  Market  Risk"  for  information with respect to
foreign  currency  derivatives.

For the nine months ended September 30, 2001, the Company reported net income of
$4.7  million, or $0.27 per share on a diluted basis, compared to $19.1 million,
or  $1.11  per  share,  in  the  comparable  period  of  2000.


RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  SEPTEMBER  30,  2001

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:


<TABLE>
<CAPTION>


                                    THREE MONTHS ENDED SEPTEMBER 30,
                                    --------------------------------
                                      2001                    2000
                                    ---------               --------
<S>                                 <C>                     <C>
                                               (UNAUDITED)
                                             (IN THOUSANDS)

SALES BY PRODUCT CLASS
Specialty papers                    $  7,496                $  8,514
Printing papers(1)                     5,198                  11,599
Pulp                                  29,999                  40,666
                                    --------                --------
Total(2)                            $ 42,693                $ 60,779
                                    ========                ========

SALES BY GEOGRAPHIC AREA
Germany                             $ 18,882                $ 24,156
European Union(3)                     14,136                  20,611
Eastern Europe and other               9,675                  16,012
                                    --------                --------
Total(2)                            $ 42,693                $ 60,779
                                    ========                ========

SALES BY VOLUME                                  (TONNES)
Specialty papers                       9,411                  10,199
Printing papers(1)                     6,818                  16,574
Pulp                                  73,937                  63,775
                                    --------                --------
Total(2)                              90,166                  90,548
                                    ========                ========

<FN>

-------------
(1)     The Company sold its printing paper mill in Hainsberg, Germany effective
        November  2000.
(2)     Excluding  intercompany  sales.
(3)     Not  including  Germany.


</TABLE>


In  the  three  months  ended  September  30,  2001,  revenues  decreased  by
approximately  23.4%  to  $47.3  million  from $61.7 million in the three months
ended  September  30, 2000, primarily as a result of lower pulp prices and lower
paper  sales  in  the  current  period.  In  the current quarter, pulp and paper
revenues decreased by approximately 29.8% from the comparable period of 2000, on
a  26.2%  decrease  in  pulp  sales  and  a  36.9%  decrease  in  paper  sales.

Pulp  sales  in  the  three  months  ended September 30, 2001 decreased to $30.0
million from $40.7 million in the comparable period of 2000 as a result of lower
prices.  Weak  demand  and high producer inventories resulted in list prices for
kraft  pulp  in  Europe decreasing from approximately $500 per tonne at June 30,
2001  to  approximately  $450  per  tonne  at  September  30,  2001.  In  order


<PAGE>


to  balance  pulp  inventory levels, many pulp producers took market downtime in
the  third  quarter  of  2001.  Such  downtime  resulted  in  a steadying of the
continuing  price  erosion  facing  producers during 2001, and certain producers
have announced a marginal price increase for the fourth quarter of 2001. Whether
pulp  prices  have  steadied  and  whether  any  short-term  price increases are
achieved  by  producers  will  depend  primarily on producers reducing inventory
levels  through downtime as required and the timing and strength of any recovery
to  the  current  global economic slowdown.  The timing and strength of any such
recovery  is  currently  uncertain.

Paper  sales  in  the  three  months ended September 30, 2001 decreased to $12.7
million  from  $20.1  million  in  the  comparative  period  of  2000.  Sales of
specialty  papers declined in the three months ended September 30, 2001 compared
to  the  three months ended September 30, 2000 as a result of lower sales prices
and  volumes,  while  sales of printing papers declined primarily as a result of
the  sale  of one of the Company's printing paper mills effective November 2000.
On  average,  prices  for  specialty papers realized by the Company in the three
months  ended September 30, 2001 decreased by approximately 4.6% compared to the
same period in 2000, while prices for printing papers increased by approximately
8.9%.

Expenses decreased to $47.1 million in the three months ended September 30, 2001
from  $52.6  million  in the comparable period of 2000, primarily as a result of
lower  paper  production  and  sales  and  a gain on foreign currency derivative
contracts.  On  average,  the  Company's unit fibre costs for pulp production in
the  three  months  ended  September  30,  2001  increased by approximately 0.6%
compared  to  the  same period in 2000.  Prices for waste paper, which currently
comprises  approximately  25%  of  the  fibre  for  the  Company's  paper mills,
decreased  in  the  three  months ended September 30, 2001, compared to the same
period  of  2000.

General  and  administrative  expenses  increased to $4.7 million in the current
quarter from $3.3 million in the three months ended September 30, 2000 primarily
due  to  higher  professional  fees.  Interest expense in the three months ended
September  30,  2001 decreased slightly to $3.4 million from $3.5 million in the
comparable period of 2000, reflecting lower interest payments resulting from the
decrease  in  the principal of the Company's bank indebtedness, partially offset
by  the  payment  of  government  guarantee  fees  and  higher interest rates in
connection  with  the entering into of foreign currency forward rate swaps.  The
Company  recorded  a  gain  of  $1.8  million on its foreign currency derivative
contracts  in  the  three  months  ended  September  30,  2001.  See  "Item  3.
Quantitative and Qualitative Disclosures About Market Risk" for information with
respect  to  foreign  currency  derivatives.

For  the  three months ended September 30, 2001, the Company reported net income
of $169,000, or $0.01 per share on a diluted basis, compared to $9.1 million, or
$0.52  per  share,  in  the  comparable  period  of  2000.


<PAGE>


LIQUIDITY  AND  CAPITAL  RESOURCES

The  following  table  is a summary of selected financial information concerning
the  Company  for  the  periods  indicated:


<TABLE>
<CAPTION>


                                            AS AT                  AS AT
                                      SEPTEMBER 30, 2001     DECEMBER 31, 2000
                                     --------------------    ------------------
<S>                                  <C>                     <C>
                                                     (UNAUDITED)
                                                   (IN THOUSANDS)

FINANCIAL POSITION
Working capital                      $             36,187    $           26,665
Property, plant and equipment (net)               246,712               265,607
Total assets                                      366,917               403,659
Long-term debt                                    191,533               208,315
Shareholders' equity                              127,591               125,407


</TABLE>


At  September  30,  2001, the Company's cash and cash equivalents totalled $18.4
million,  compared to $18.5 million at December 31, 2000.  At September 30, 2001
and  December  31, 2000, the Company had short-term trading securities totalling
approximately  $5.3  million.

OPERATING  ACTIVITIES

Operating  activities  provided  cash  of $26.7 million in the nine months ended
September  30,  2001,  compared  to  $9.4 million in the same period in 2000.  A
decrease  in  receivables  provided  cash of $6.2 million in the current period,
compared  to  an  increase  in  receivables  using  cash  of $2.2 million in the
comparative  period of 2000.  Lower inventories provided cash of $4.7 million in
the  current  period,  compared  to  $0.9  million  in the comparative period. A
decrease  in  accounts payable and accrued expenses used cash of $4.1 million in
the  nine  months  ended September 30, 2001, compared to an increase in accounts
payable  and  accrued expenses providing cash of $1.5 million in the nine months
ended  September  30,  2000. Net purchases of investment securities used cash of
$0.8  million  in  the  nine  months ended September 30, 2001, compared to $29.0
million  in  the  comparative  period  of  2000.

INVESTING  ACTIVITIES

Investing  activities  in  the nine months ended September 30, 2001 used cash of
$1.3  million,  consisting  primarily  of capital expenditures on properties and
partially  offset by a reduction in notes receivable, compared to providing cash
of  $39.0  million  in  the  nine  months  ended  September  30,  2000.

The Company completed a major capital project to convert its Rosenthal pulp mill
from  the  production  of  sulphite to kraft pulp, increase capacity and improve
operations  (the "Conversion Project") in late 1999.  The Conversion Project was
financed  through  a  combination  of  borrowings  under  a  project  loan,
non-refundable  governmental  grants, governmental assistance and guarantees for
long-term  project  financing  and  an  equity  investment  by  the  Company.


<PAGE>


The  Company  is continuing to review its paper operations to define a long-term
core  competency in respect of products produced in order that future investment
may  be  directed  towards  that  segment.

FINANCING  ACTIVITIES

Financing  activities  used  cash  of  $25.0  million  in  the nine months ended
September  30,  2001, primarily as a result of lower indebtedness, including the
repayment  of  $25.6 million in indebtedness relating to the Conversion Project.
Financing  activities  used  cash  of  $47.7  million  in  the nine months ended
September  30,  2000.

The  depreciation  of the deutschmark against the U.S. dollar in the nine months
ended  September 30, 2001 resulted in an unrealized foreign exchange translation
loss  of  $0.5  million  on  cash and cash equivalents, which is included in the
Company's  statement  of  comprehensive income and does not affect the Company's
net  earnings.  See  "Foreign  Currency".

Effective  January  2000,  the Company agreed, subject to certain conditions, to
acquire  a  controlling  interest  in  a  "greenfield"  project to construct and
operate  a  550,000-tonne  softwood  kraft  pulp  mill to be located at Stendal,
Germany  (the  "Stendal  Project").  In 2001, the Company agreed to increase its
ultimate  ownership  position  in  the  Stendal Project to 57.5%.  The Company's
participation  in  the  Stendal  Project  is  subject  to,  among  other things,
completion  of due diligence and the Stendal Project itself is subject to, among
other  things,  financing,  final  permit  amendments and approval of government
investment  incentives.  The  Stendal  Project  is  currently  estimated to cost
approximately  euro 1.0 billion (or $0.9 billion) and to be completed by the end
of  2004. Financing for the Stendal Project is expected to come from the project
partners, long-term bank credit facilities and government investment incentives.
In  July  2001,  Bayerische  Hypo-  und Vereinsbank AG agreed to act as the lead
financial  arranger  and  underwriter  for  committed  project financing for the
Stendal  Project  in the amount of euro 891.4 million (or $811.1 million).  Such
financing is subject to terms and conditions customary for project financings of
such  nature.  See  "Stendal  Pulp  Mill  Project  Uncertainties".

Other  than  the  agreement  relating to the Stendal Project, the Company had no
material  commitments  to acquire assets or operating businesses as at September
30,  2001,  although  it  is  considering  a  number  of initiatives relating to
potential  acquisitions and joint ventures both in Europe and North America.  In
November  2001, the Company entered into an exclusive arrangement to restructure
and  acquire  Skeena  Cellulose  Inc.,  an  insolvent  Canadian  pulp and forest
products  company  that  is  currently  under  court-ordered  protection  from
creditors.  The proposed transaction is subject to various conditions, customary
for  transactions of this nature, including entering into a definitive agreement
by mid-December 2001 and receipt of all necessary creditor, regulatory and court
approvals.  The  Company  anticipates  that  there  will  be  acquisitions  of
businesses  or  commitments to projects in the future.  To achieve its long-term
goals of expanding its asset and earnings base through mergers and acquisitions,
the Company will require substantial capital resources.  The necessary resources
will  be  generated  from  cash  flow  from  operations, cash on hand, borrowing
against  its  assets  and/or  the  sale  of  assets.


<PAGE>


FOREIGN  CURRENCY

Substantially  all  of  the  Company's operations are conducted in international
markets  and  its consolidated financial results are subject to foreign currency
exchange rate fluctuations, in particular, those in Germany.  The Company's pulp
and  paper  products  are  principally  sold  in  deutschmarks  and  euros  and
approximately  99% of the Company's revenues are denominated in deutschmarks and
euros.  The  value  of  the  euro  is  fixed  at  1.95583  deutschmarks.

The  Company  translates foreign assets and liabilities into U.S. dollars at the
rate  of  exchange  on  the  balance  sheet  date.  Revenues  and  expenses  are
translated  at  the  average  rate  of  exchange  prevailing  during the period.
Unrealized gains or losses from these translations are recorded as shareholders'
equity  on the Company's balance sheet and do not affect the net earnings of the
Company.

Since  substantially  all of the Company's revenues are received in deutschmarks
and  euros,  the  financial  position  of the Company for any given period, when
reported  in  U.S.  dollars, can be significantly affected by the exchange rates
for  deutschmarks  prevailing  during  that  period.  In  the  nine months ended
September  30, 2001, the depreciation of the deutschmark against the U.S. dollar
resulted  in  a  net  $4.0  million  foreign exchange translation loss and, as a
result,  the  cumulative  foreign exchange translation loss increased from $56.3
million  at December 31, 2000 to $60.3 million at September 30, 2001.  See "Item
3.  Quantitative  and Qualitative Disclosures About Market Risk" for information
with  respect  to  foreign  currency  derivatives.

The average and period end exchange rates for the deutschmark to the U.S. dollar
for  the  periods  indicated  are  as  follows:


<TABLE>
<CAPTION>


                        QUARTER ENDED                        QUARTER ENDED
                     SEPTEMBER 30, 2001                   SEPTEMBER 30, 2000
                ------------------------------    ------------------------------
                PERIOD END      PERIOD AVERAGE    PERIOD END      PERIOD AVERAGE
                ----------      --------------    ----------      --------------
<S>             <C>             <C>               <C>             <C>
RATE OF EXCHANGE
Deutschmark       2.1495          2.1940            2.2119          2.1653


</TABLE>


Based  upon  the period average exchange rate in the nine months ended September
30,  2001,  the U.S. dollar increased by approximately 4.9% in value against the
deutschmark  since  December  31,  2000.

CYCLICAL  NATURE  OF  BUSINESS;  COMPETITIVE  POSITION

The  pulp and paper business is cyclical in nature and markets for the Company's
principal  products are characterized by periods of supply and demand imbalance,
which  in turn affects product prices. The markets for pulp and paper are highly
competitive  and  sensitive  to cyclical changes in industry capacity and in the
economy,  both  of  which can have a significant influence on selling prices and
the  earnings  of  the  Company.  Demand  for  pulp  and  paper  products  has
historically  been  determined  by  the  level  of  economic growth and has been
closely  tied  to  overall  business  activity.  The competitive position of the
Company  is  influenced by the availability and quality of raw materials (fibre)
and  its  experience  in  relation to other producers with respect to inflation,
energy,  transportation,  labour  costs  and  productivity.


<PAGE>


STENDAL  PULP  MILL  PROJECT  UNCERTAINTIES

The  Company's  participation  in  the  Stendal  Project  is  subject to certain
conditions, including completion of its due diligence.  In addition, the Stendal
Project  itself is subject to various risks and uncertainties customary to large
"greenfield" projects of this nature which may result in the Stendal Project not
proceeding  as  currently  planned,  or at all, such as availability and cost of
materials  and  labour,  construction delays, cost overruns, weather conditions,
governmental  regulations,  availability  of  adequate  financing,  increases in
long-term  interest  rates  and  increases in taxes and other governmental fees.
The  Stendal  Project  will also be subject to extensive and complex regulations
and  environmental compliance which may result in delays, in the project company
and/or  its  shareholders, including the Company, incurring substantial costs in
relation  thereto  or  in the Stendal Project being amended or not proceeding at
all.

The  implementation  of the Stendal Project is currently expected to commence in
2002  and  be  completed by the end of 2004.  However, there can be no assurance
that  the  Stendal  Project  will  proceed  as  currently  planned,  or  at all.

FORWARD-LOOKING  STATEMENTS

Statements  in  this  report,  to  the  extent  they are not based on historical
events,  constitute  forward-looking  statements.  Forward-looking  statements
include,  without  limitation,  statements  regarding  the  outlook  for  future
operations, forecasts of future costs and expenditures, the evaluation of market
conditions, the outcome of legal proceedings, the adequacy of reserves, or other
business  plans.  Investors  are  cautioned  that forward-looking statements are
subject  to  an inherent risk that actual results may vary materially from those
described  herein.  Factors  that  may  result  in such variance, in addition to
those  accompanying  the forward-looking statements, include changes in interest
rates,  commodity prices, and other economic conditions; actions by competitors;
changing  weather  conditions and other natural phenomena; actions by government
authorities;  uncertainties  associated  with  legal  proceedings; technological
development;  future decisions by management in response to changing conditions;
and  misjudgments  in  the  course  of  preparing  forward-looking  statements.

ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT
          MARKET  RISK

The  Company  is exposed to market risks from changes in interest rates, foreign
currency  exchange  rates  and  equity  prices  which  may affect its results of
operations  and  financial  condition.  The  Company manages these risks through
internal risk management policies.  The Company also uses derivative instruments
in regard to its exposure to interest rate, currency and pulp price risks.   The
derivative instruments are not designated as hedging instruments and the purpose
of  the  derivative  activity  is speculative in nature, as management uses such
tools either to augment the Company's potential gains or to reduce the Company's
potential losses, depending on management's perception of future economic events
and  developments.  If  any  of  the  variety  of instruments and strategies the
Company  utilizes  are not effective, the Company may incur losses.  Many of the
Company's  strategies are based on historical trading patterns and correlations.
However,  these strategies may not be fully effective in all market environments
or  against  all  types  of  risks.  Unexpected  market


<PAGE>


developments  may  affect  the  Company's risk management strategies during this
time,  and unanticipated developments could impact the Company's risk management
strategies  in  the  future.

In  December  2000,  the  Company entered into U.S. dollar/euro foreign currency
forward  rate  swaps  to  manage  its risk exposure with respect to in aggregate
approximately  euro  223.3  million  of  the  principal  amount of its long-term
indebtedness.  The  current  nominal amount at September 30, 2001 was euro 217.4
million  and a fair value gain of $1.3 million on these contracts was recognized
in  the  nine  months  ended  September  30,  2001.

During  the  first  quarter of 2001, the Company entered into a U.S. dollar/euro
forward  contract  in  the  amount of approximately euro 35.0 million, which was
settled  in  March  2001.  The  contract  resulted  in  a  $2.3  million  loss.

During the second quarter of 2001, the Company entered into two U.S. dollar/euro
forward  contracts  in  the aggregate amount of approximately euro 22.4 million,
maturing  in  the  second  quarter of 2002. A fair value gain of $0.3 million on
these  contracts  was  recognized  in  the nine months ended September 30, 2001.

As  at September 30, 2001, no derivative contract had been executed with respect
to  pulp  prices.

Any  change  in  the  fair  value  of  derivative instruments is included in the
determination  of  earnings.

Reference is made to the Company's annual report on Form 10-K for the year ended
December  31,  2000  for  additional  information  concerning  market  risk.


<PAGE>


                            PART II. OTHER INFORMATION
                                     -----------------

ITEM  1.     LEGAL  PROCEEDINGS

The  Company  is  subject to routine litigation incidental to its business.  The
Company  does  not  believe  that  the  outcome  of  such litigation will have a
material  adverse  effect  on  its  business  or  financial  condition.

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

The  Company  held  its annual meeting of shareholders on July 10, 2001.  At the
meeting,  C.S.  Moon  and  Maarten  Reidel  were elected Class I Trustees of the
Company  for  a  three  year  term  as  follows:


<TABLE>
<CAPTION>


                                                        ABSTENTIONS AND
                   VOTES FOR       VOTES WITHHELD      BROKER NON-VOTES
                   ---------       --------------      ----------------
<S>                <C>             <C>                 <C>
C.S. Moon          15,082,168           5,576                 -
Maarten Reidel     15,082,168           5,576                 -


</TABLE>


Jimmy S.H. Lee, Michel Arnulphy and R. Ian Rigg continued their respective terms
as  Trustees  of  the  Company.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)   EXHIBITS

      None.

(b)   REPORTS  ON  FORM  8-K

      None.


<PAGE>


                                   SIGNATURES

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
Registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned,  thereunto  duly  authorized.


                                 MERCER  INTERNATIONAL  INC.


                                 By:  /s/  R.  Ian  Rigg
                                      ------------------
                                      R.  Ian  Rigg
                                      Vice President and
                                      Chief Financial
                                      Officer


Date:  November  13,  2001