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 JUNE 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
August  13,  2001.



<PAGE>
                         PART I.  FINANCIAL INFORMATION
                                  ---------------------

ITEM  1.     FINANCIAL  STATEMENTS




                            MERCER INTERNATIONAL INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2001

                                   (UNAUDITED)




<PAGE>
                            MERCER INTERNATIONAL INC.

                           CONSOLIDATED BALANCE SHEETS
                    AS AT JUNE 30, 2001 AND DECEMBER 31, 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>



<S>                                    <C>         <C>
                                        JUNE 30,    DECEMBER 31,
                                          2001          2000
                                       ----------  --------------
          ASSETS
Current Assets
  Cash and cash equivalents . . . . .  $  14,061   $      18,496
  Investments . . . . . . . . . . . .      5,683           5,320
  Receivables . . . . . . . . . . . .     38,210          46,088
  Inventories . . . . . . . . . . . .     16,378          19,977
  Prepaid and other . . . . . . . . .      2,713           3,000
                                       ----------  --------------
    Total current assets. . . . . . .     77,045          92,881

Long-Term Assets
  Cash restricted . . . . . . . . . .     21,394          25,150
  Properties. . . . . . . . . . . . .    234,007         265,607
  Investments . . . . . . . . . . . .      6,461           6,101
  Notes receivable. . . . . . . . . .          -           4,296
  Deferred income tax . . . . . . . .      8,778           9,624
                                       ----------  --------------
                                         270,640         310,778
                                       ----------  --------------
                                       $ 347,685   $     403,659
                                       ==========  ==============

          LIABILITIES
Current Liabilities
  Accounts payable and accrued
   expenses . . . . . . . . . . . . .  $  31,737   $      37,058
  Pulp mill renovation costs payable.        183           1,146
  Note payable. . . . . . . . . . . .        578             839
  Debt. . . . . . . . . . . . . . . .     10,397          27,173
                                       ----------  --------------
    Total current liabilities . . . .     42,895          66,216

Long-Term Liabilities
  Debt. . . . . . . . . . . . . . . .    183,101         208,315
  Other . . . . . . . . . . . . . . .      3,264           3,721
                                       ----------  --------------
                                         186,365         212,036
                                       ----------  --------------
    Total liabilities . . . . . . . .    229,260         278,252

          SHAREHOLDERS' EQUITY
Shares of beneficial interest . . . .     99,995          99,995
Retained earnings . . . . . . . . . .     93,202          88,698
Accumulated other comprehensive loss.    (74,772)        (63,286)
                                       ----------  --------------
                                         118,425         125,407
                                       ----------  --------------
                                       $ 347,685   $     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 SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
              (DOLLARS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)

<TABLE>
<CAPTION>



<S>                                             <C>       <C>
                                                  2001       2000
                                                --------  ---------
Revenues
  Sales. . . . . . . . . . . . . . . . . . . .  $100,820  $114,818
  Other. . . . . . . . . . . . . . . . . . . .     7,486     4,657
                                                --------  ---------
                                                 108,306   119,475
Expenses
  Cost of sales. . . . . . . . . . . . . . . .    85,241    97,076
  General and administrative . . . . . . . . .     8,478     5,251
  Interest expense . . . . . . . . . . . . . .     7,504     7,110
  Loss on foreign currency derivative
   contracts . . . . . . . . . . . . . . . . .     2,553         -
                                                --------  ---------
                                                 103,776   109,437
                                                --------  ---------

Income before income taxes . . . . . . . . . .     4,530    10,038
Income taxes (recovery). . . . . . . . . . . .        26        (9)
                                                --------  ---------

Net income . . . . . . . . . . . . . . . . . .     4,504    10,047

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

Retained earnings, end of period . . . . . . .  $ 93,202  $ 69,271
                                                ========  =========

Earnings per share
  Basic. . . . . . . . . . . . . . . . . . . .  $   0.27  $   0.60
                                                ========  =========
  Diluted. . . . . . . . . . . . . . . . . . .  $   0.26  $   0.59
                                                ========  =========

</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 JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
              (DOLLARS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)

<TABLE>
<CAPTION>



<S>                                             <C>       <C>
                                                  2001      2000
                                                --------  -------
Revenues
  Sales. . . . . . . . . . . . . . . . . . . .  $48,454   $59,575
  Other. . . . . . . . . . . . . . . . . . . .    3,856     4,140
                                                --------  -------
                                                 52,310    63,715
Expenses
  Cost of sales. . . . . . . . . . . . . . . .   43,264    48,184
  General and administrative . . . . . . . . .    4,918     3,563
  Interest expense . . . . . . . . . . . . . .    3,960     2,978
  Loss on foreign currency derivative
   contracts . . . . . . . . . . . . . . . . .      213         -
                                                --------  -------
                                                 52,355    54,725
                                                --------  -------

Income (loss) before income taxes. . . . . . .      (45)    8,990
Income taxes . . . . . . . . . . . . . . . . .       26        14
                                                --------  -------

Net income (loss). . . . . . . . . . . . . . .      (71)    8,976

Retained earnings, beginning of period . . . .   93,273    60,295
                                                --------  -------

Retained earnings, end of period . . . . . . .  $93,202   $69,271
                                                ========  =======

Earnings (loss) per share
  Basic. . . . . . . . . . . . . . . . . . . .  $ (0.00)  $  0.54
                                                ========  =======
  Diluted. . . . . . . . . . . . . . . . . . .  $ (0.00)  $  0.52
                                                ========  =======

</TABLE>




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

<PAGE>
                            MERCER INTERNATIONAL INC.

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


<TABLE>
<CAPTION>



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

Net income. . . . . . . . . . . . . . . . .  $  4,504   $10,047

Other comprehensive gain (loss):
  Foreign currency translation adjustments.   (13,004)   (6,048)
  Unrealized gain (loss) on securities. . .     1,518      (622)
                                             ---------  --------

  Other comprehensive loss. . . . . . . . .   (11,486)   (6,670)
                                             ---------  --------

Total comprehensive gain (loss) . . . . . .  $ (6,982)  $ 3,377
                                             =========  ========

</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 JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>



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

Net income (loss) . . . . . . . . . . . . .  $   (71)  $8,976

Other comprehensive gain (loss):
  Foreign currency translation adjustments.   (5,036)    (196)
  Unrealized gain (loss) on securities. . .      475     (607)
                                             --------  -------

  Other comprehensive loss. . . . . . . . .   (4,561)    (803)
                                             --------  -------

Total comprehensive gain (loss) . . . . . .  $(4,632)  $8,173
                                             ========  =======

</TABLE>




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

<PAGE>
                            MERCER INTERNATIONAL INC.

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

<TABLE>
<CAPTION>



<S>                                                   <C>        <C>
                                                         2001       2000
                                                      ---------  ---------
Cash Flows from Operating Activities:
  Net income . . . . . . . . . . . . . . . . . . . .  $  4,504   $ 10,047
  Adjustments to reconcile net income from
   operations to cash
    Depreciation and amortization. . . . . . . . . .    10,398     13,491

  Changes in current assets and liabilities
    Investments. . . . . . . . . . . . . . . . . . .      (816)   (14,270)
    Inventories. . . . . . . . . . . . . . . . . . .     1,741      2,180
    Receivables. . . . . . . . . . . . . . . . . . .     4,702      1,437
    Accounts payable and accrued expenses. . . . . .    (1,515)     2,531
    Other. . . . . . . . . . . . . . . . . . . . . .        (9)        20
                                                      ---------  ---------
      Net cash provided by operating activities. . .    19,005     15,436

Cash Flows from Investing Activities:
  Purchase of fixed assets, net of investment grants    (4,416)    36,308
  Decrease in notes receivable . . . . . . . . . . .     4,296         10
  Other. . . . . . . . . . . . . . . . . . . . . . .        58          -
                                                      ---------  ---------
      Net cash provided by (used in) investing
       activities. . . . . . . . . . . . . . . . . .       (62)    36,318

Cash Flows from Financing Activities:
  Cash restricted. . . . . . . . . . . . . . . . . .     1,372          -
  Increase in indebtedness . . . . . . . . . . . . .         -      5,888
  Decrease in indebtedness . . . . . . . . . . . . .   (21,244)    (1,139)
  Decrease in pulp mill conversion costs payable . .      (900)   (49,264)
                                                      ---------  ---------
      Net cash used in financing activities. . . . .   (20,772)   (44,515)

Effect of exchange rate changes on cash and
 cash equivalents. . . . . . . . . . . . . . . . . .    (2,606)      (993)
                                                      ---------  ---------

Net increase (decrease) in cash and cash equivalents    (4,435)     6,246

Cash and cash equivalents, beginning of period . . .    18,496      1,722
                                                      ---------  ---------
Cash and cash equivalents, end of period . . . . . .  $ 14,061   $  7,968
                                                      =========  =========

</TABLE>




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

<PAGE>
                            MERCER INTERNATIONAL INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       FOR SIX MONTHS ENDED JUNE 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 generally
accepted  accounting  principles 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 16,715,399 for the six months ended
June  30,  2001  and  2000,  respectively, and 16,874,899 and 16,715,399 for the
three  months  ended  June 30, 2001 and 2000, respectively. The weighted average
number  of  shares  outstanding for the purposes of calculating diluted earnings
per  share  was 17,154,277 and 17,101,499 for the six months ended June 30, 2001
and 2000, respectively, and 16,874,899 and 17,210,116 for the three months ended
June  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  adopts 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  table:

<TABLE>
<CAPTION>



<S>                                             <C>       <C>      <C>

                                                PULP      PAPER    TOTAL
                                                --------  -------  --------

SIX MONTHS ENDED JUNE 30, 2001
Sales to external customers. . . . . . . . . .  $72,158   $28,662  $100,820
Intersegment net sales . . . . . . . . . . . .    3,236         -     3,236
Segment profit . . . . . . . . . . . . . . . .    6,504       786     7,290

Reconciliation of profit:
 Total profit for reportable segments. . . . .                      $ 7,290
 Elimination of intersegment profits . . . . .                          602
 Unallocated amounts, other corporate expenses                       (3,362)
                                                                    --------

   Consolidated income before income taxes . .                      $ 4,530
                                                                    ========

SIX MONTHS ENDED JUNE 30, 2000
Sales to external customers. . . . . . . . . .  $70,100   $44,718  $114,818
Intersegment net sales . . . . . . . . . . . .      352         -       352
Segment profit . . . . . . . . . . . . . . . .   10,614     1,230    11,844

Reconciliation of profit:
 Total profit for reportable segments. . . . .                      $11,844
 Elimination of intersegment profits . . . . .                            -
 Unallocated amounts, other corporate expenses                       (1,806)
                                                                    --------

   Consolidated income before income taxes . .                      $10,038
                                                                    ========
</TABLE>

<PAGE>

<TABLE>
<CAPTION>



<S>                                             <C>       <C>      <C>

                                                PULP      PAPER    TOTAL
                                                --------  -------  --------

THREE MONTHS ENDED JUNE 30, 2001
Sales to external customers. . . . . . . . . .  $35,567   $12,887  $ 48,454
Intersegment net sales . . . . . . . . . . . .    1,534         -     1,534
Segment profit . . . . . . . . . . . . . . . .      991       717     1,708

Reconciliation of profit:
 Total profit for reportable segments. . . . .                      $ 1,708
 Elimination of intersegment profits . . . . .                          333
 Unallocated amounts, other corporate expenses                       (2,086)
                                                                    --------

   Consolidated loss before income taxes . . .                      $   (45)
                                                                    ========

THREE MONTHS ENDED JUNE 30, 2000
Sales to external customers. . . . . . . . . .  $37,814   $21,761  $ 59,575
Intersegment net sales . . . . . . . . . . . .      219         -       219
Segment profit . . . . . . . . . . . . . . . .    9,716        65     9,781

Reconciliation of profit:
 Total profit for reportable segments. . . . .                      $ 9,781
 Elimination of intersegment profits . . . . .                            -
 Unallocated amounts, other corporate expenses                         (791)
                                                                    --------

   Consolidated income before income taxes . .                      $ 8,990
                                                                    ========

</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 six months
and  three  months  ended  June  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  7.0%  against  the deutschmark in the six months and three months
ended  June  30,  2001,  respectively,  compared  to  the  same periods of 2000.

RESULTS  OF  OPERATIONS  -  SIX  MONTHS  ENDED  JUNE  30,  2001

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:
<TABLE>
<CAPTION>



<S>                        <C>       <C>
                            SIX MONTHS ENDED
                                JUNE 30,
                           ------------------
                             2001      2000
                           --------  --------
                              (UNAUDITED)
                             (IN THOUSANDS)
SALES BY PRODUCT CLASS
Packaging papers(1) . . .  $      -  $  8,758
Specialty papers. . . . .    17,579    16,860
Printing papers(2). . . .    11,083    19,100
Pulp. . . . . . . . . . .    72,158    70,100
                           --------  --------
Total(3). . . . . . . . .  $100,820  $114,818
                           ========  ========

SALES BY GEOGRAPHIC AREA
Germany . . . . . . . . .  $ 47,557  $ 46,952
European Union(4) . . . .    35,600    41,295
Eastern Europe and other.    17,663    26,571
                           --------  --------
Total(3). . . . . . . . .  $100,820  $114,818
                           ========  ========

                                (TONNES)
SALES BY VOLUME
Packaging papers(1) . . .         -    29,111
Specialty papers. . . . .    20,909    21,056
Printing papers(2). . . .    13,848    27,853
Pulp. . . . . . . . . . .   142,082   119,252
                           --------  --------
Total(3). . . . . . . . .   176,839   197,272
                           ========  ========

</TABLE>




(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.

<PAGE>

In  the six months ended June 30, 2001, revenues decreased by approximately 9.3%
to  $108.3  million  from  $119.5 million in the six months ended June 30, 2000,
primarily  as a result of lower paper sales and lower pulp prices in the current
period.  The  decrease in revenues in the current period was partially offset by
higher  pulp  volumes.  In  the  six  months ended June 30, 2001, pulp and paper
revenues decreased by approximately 12.2% from the comparable period of 2000, on
a  2.9%  increase  in  pulp  sales  and  a  35.9%  decrease  in  paper  sales.

Pulp sales in the six months ended June 30, 2001 increased to $72.2 million from
$70.1  million  in the  comparable  period of 2000.  In late  1999, the  Company
completed  the  conversion of the Company's pulp mill to the production of kraft
pulp  and  the increase of the pulp mill's annual production capacity to 280,000
tonnes  (the "Conversion Project").  The pulp mill ramped up production in early
2000  and  has  operated in excess of 90% of capacity since the beginning of the
second  quarter  of  2000.  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 and approximately $530 per tonne during the
second  quarter  of  2001.

Paper  sales  in  the  six months ended June 30, 2001 decreased to $28.7 million
from  $44.7 million in the comparable period of 2000.  Sales of specialty papers
increased in the six months ended June 30, 2001 compared to the six months ended
June 30, 2000 as a result of higher sales prices, 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 six months ended June 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 six months ended
June  30, 2001 increased by approximately 5.0% and 16.7%, respectively, compared
to the same period in 2000.

Expenses  decreased to $103.8 million in the six months ended June 30, 2001 from
$109.4  million  in  the  comparable period of 2000, primarily as a result of an
improvement  in  pulp  production  efficiency  due  to  the  ramping-up  of pulp
production in early 2000 and a decrease in the production of paper products.  On
average,  the  Company's  unit fibre costs for pulp production in the six months
ended June 30, 2001 increased by approximately 12.9% 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 six months ended
June  30,  2001,  compared  to  the  same  period  of  2000.

General  and  administrative  expenses were $8.5 million in the six months ended
June  30,  2001, compared to $5.3 million in the six months ended June 30, 2000.
Interest expense in the six months ended June 30, 2001 increased to $7.5 million
from $7.1 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 $2.6 million on its foreign
currency  derivative contracts in the six months ended June 30, 2001.  See "Item
3.  Quantitative  and Qualitative Disclosures About Market Risk" for information
with  respect  to  foreign  currency  derivatives.

<PAGE>

For  the six months ended June 30, 2001, the Company reported net income of $4.5
million,  or  $0.26  per share on a diluted basis, compared to $10.0 million, or
$0.59  per  share,  in  the  comparable  period  of  2000.

RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  JUNE  30,  2001

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:
<TABLE>
<CAPTION>



<S>                            <C>        <C>

                               THREE MONTHS ENDED
                                    JUNE 30,
                               ------------------
                                  2001      2000
                               ---------  -------
                                   (UNAUDITED)
                                 (IN THOUSANDS)
SALES BY PRODUCT CLASS
Packaging papers(1) . . . . .  $       -  $ 3,553
Specialty papers. . . . . . .      7,782    8,365
Printing papers(2). . . . . .      5,105    9,843
Pulp. . . . . . . . . . . . .     35,567   37,814
                               ---------  -------
Total(3). . . . . . . . . . .  $  48,454  $59,575
                               =========  =======

SALES BY GEOGRAPHIC AREA
Germany . . . . . . . . . . .  $  21,229  $24,153
European Union(4) . . . . . .     18,661   21,828
Eastern Europe and other. . .      8,564   13,594
                               ---------  -------
Total(3). . . . . . . . . . .  $  48,454  $59,575
                               =========  =======

                                     (TONNES)
SALES BY VOLUME
Packaging papers(1) . . . . .          -   11,394
Specialty papers. . . . . . .      9,865   10,398
Printing papers(2). . . . . .      6,799   14,364
Pulp. . . . . . . . . . . . .     80,340   60,941
                               ---------  -------
Total(3). . . . . . . . . . .     97,004   97,097
                               =========  =======

</TABLE>




(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.

In  the  three  months  ended June 30, 2001, revenues decreased by approximately
17.9%  to  $52.3  million  from $63.7 million in the three months ended June 30,
2000,  primarily  as  a result of lower paper sales and lower pulp prices in the
current  period.  The  decrease  in revenues in the current period was partially
offset  by  higher  pulp volumes.  In the three months ended June 30, 2001, pulp
and  paper  revenues decreased by approximately 18.7% from the comparable period
of  2000,  on a 5.9% decrease in pulp sales and a 40.8% decrease in paper sales.

Pulp  sales  in  the three months ended June 30, 2001 decreased to $35.6 million
from  $37.8  million in the comparable period of 2000 as a result of lower sales
prices.  In  late  1999, the Company completed the Conversion Project to convert
the  Company's pulp mill to the production of kraft pulp and increase its annual
production  capacity  to  280,000 tonnes.  The pulp mill ramped up production

<PAGE>

in early 2000 and has  operated in excess of 90% of capacity since the beginning
of  the  second  quarter  of 2000.  A decrease  in  pulp  demand and  high  pulp
inventories  resulted in  list prices for  kraft pulp in Europe  decreasing from
approximately $620 per  tonne at  March 31, 2001 to approximately $500 per tonne
at June 30, 2001.  List  prices continued to  deteriorate into the third quarter
of 2001.  In order  to  balance  pulp inventory levels, many pulp producers have
announced market  downtime  in  the  third  quarter  of  2001.

Paper  sales  in the three months ended June 30, 2001 decreased to $12.9 million
from  $21.8 million in the comparable period of 2000.  Sales of specialty papers
declined  in  the  three months ended June 30, 2001 compared to the three months
ended  June  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.  The Company  did not
sell any packaging papers during the  second quarter of 2001 as a  result of the
divestiture of its packaging paper mill effective June 2000.  On average, prices
for specialty papers realized by the Company in the three months ended June  30,
2001 decreased by approximately 1.9% compared to the same period in 2000,  while
prices  for  printing  papers  increased  by  approximately  9.6%.

Expenses decreased to $52.4 million in the three months ended June 30, 2001 from
$54.7  million  in  the  comparable  period of 2000, primarily as a result of an
improvement  in  pulp  production  efficiency  due  to  the  ramping-up  of pulp
production in early 2000 and a decrease in the production of paper products.  On
average,  the Company's unit fibre costs for pulp production in the three months
ended June 30, 2001 increased by approximately 11.6% 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 three months
ended  June  30,  2001,  compared  to  the  same  period  of  2000.

General  and administrative expenses were $4.9 million in the three months ended
June 30, 2001, compared to $3.6 million in the three months ended June 30, 2000.
Interest  expense  in  the  three  months  ended June 30, 2001 increased to $4.0
million  from  $3.0  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 $0.2
million  on  its foreign currency derivative contracts in the three months ended
June  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 June 30, 2001, the Company reported a net loss of
$71,000,  or  $0.00 per share on a diluted basis, compared to net income of $9.0
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>



<S>                                  <C>              <C>

                                          AS AT             AS AT
                                      JUNE 30, 2001   DECEMBER 31, 2000
                                     ---------------  ------------------
                                                (UNAUDITED)
                                              (IN THOUSANDS)

FINANCIAL POSITION
Working capital . . . . . . . . . .  $        34,150  $           26,665
Property, plant and equipment (net)          234,007             265,607
Total assets. . . . . . . . . . . .          347,685             403,659
Long-term debt. . . . . . . . . . .          183,101             208,315
Shareholders' equity. . . . . . . .          118,425             125,407

</TABLE>




At  June  30,  2001,  the  Company's  cash  and  cash equivalents totalled $14.1
million, a net decrease of $4.4 million from $18.5 million at December 31, 2000.
At  June  30, 2001, the Company had short-term trading securities totalling $5.7
million,  compared  to  $5.3  million  at  December  31,  2000.

OPERATING  ACTIVITIES

Operating activities provided cash of $19.0 million in the six months ended June
30,  2001,  compared to $15.4 million in the same period in 2000.  A decrease in
receivables  provided  cash  of  $4.7 million in the current period, compared to
$1.4  million in the comparative period of 2000.  A decrease in accounts payable
and  accrued expenses used cash of $1.5 million in the six months ended June 30,
2001, compared to an increase in accounts payable and accrued expenses providing
cash  of  $2.5 million in the six months ended June 30, 2000.  Lower inventories
provided cash of $1.7 million in the six months ended June 30, 2001, compared to
$2.2 million in the six months ended June 30, 2000.  Net purchases of investment
securities  used  cash  of  $0.8  million in the six months ended June 30, 2001,
compared  to  $14.3  million  in  the  comparative  period  of  2000.

INVESTING  ACTIVITIES

Investing activities in the six months ended June 30, 2001 used cash of $62,000,
consisting  primarily of capital expenditures on properties and partially offset
by  a reduction in notes receivable, compared to providing cash of $36.3 million
in  the  six  months  ended  June  30,  2000.

The  Company  completed  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.

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.

<PAGE>

FINANCING  ACTIVITIES

Financing activities used cash of $20.8 million in the six months ended June 30,
2001,  primarily  as  a result of the repayment of $21.2 million in indebtedness
relating  to  the  Conversion  Project.  Financing activities used cash of $44.5
million  in  the  six  months  ended  June  30,  2000.

The  depreciation  of  the deutschmark against the U.S. dollar in the six months
ended  June 30, 2001 resulted in an unrealized foreign exchange translation loss
of $2.6 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 entering into of a shareholders' agreement
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  $847.5  million)  and  to  be  completed in 2005. 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, the Company
announced that Bayerische Hypo- und Vereinsbank AG has agreed to act as the lead
financial  arranger  and  underwriter  on  the credit facilities for the Stendal
Project.  The  aggregate  amount  of the facilities to be arranged is up to euro
891.4  million  (or  $755.4  million).  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 June 30,
2001.  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.

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.

<PAGE>

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 six months ended June
30,  2001,  the depreciation of the deutschmark against the U.S. dollar resulted
in  a  net $13.0 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 $69.3 million at June 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>



<S>               <C>            <C>             <C>         <C>
                         QUARTER ENDED               QUARTER ENDED
                         JUNE 30, 2001               JUNE 30, 2000
                  -----------------------------  --------------------------
                  PERIOD END     PERIOD AVERAGE  PERIOD END  PERIOD AVERAGE
                  -------------  --------------  ----------  --------------
RATE OF EXCHANGE
Deutschmark. . .         2.3079          2.2399      2.0486          2.0941

</TABLE>



Based  upon  the  period  average exchange rate in the six months ended June 30,
2001,  the  U.S.  dollar  increased  by  approximately 4.7% 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  and entering into a
shareholders'  agreement.  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
the  first  quarter  of 2002 and be completed in 2005.  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 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.

<PAGE>

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.  A  fair  value  gain  of  $0.9  million  on  these  contracts was
recognized  in  the  six  months  ended  June  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 loss of $1.1 million on
these contracts was  recognized  in  the  six  months  ended  June  30,  2001.

As  at  June  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  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:  August  13,  2001