=============================================================================

                                  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, 2002

                                       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.)

                  SCHUTZENGASSE 32, ZURICH, SWITZERLAND, 8001
                              (Address of office)

                                41 (43) 344 7070
              (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,  2002.


================================================================================

<PAGE>

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

ITEM  1.     FINANCIAL  STATEMENTS




                            MERCER INTERNATIONAL INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

                                  (UNAUDITED)


                                        2

<PAGE>

                            MERCER INTERNATIONAL INC.

                           CONSOLIDATED BALANCE SHEETS
                    AS AT JUNE 30, 2002 AND DECEMBER 31, 2001
                                   (UNAUDITED)
                              (EUROS IN THOUSANDS)

<TABLE>
<CAPTION>

                                            JUNE 30,          DECEMBER 31,
                                              2002                2001
                                         ------------       ----------------
<S>                                      <C>                <C>
                                     ASSETS


Current Assets
  Cash and cash equivalents               E     22,873      E         11,741
  Investments                                    1,788                 4,549
  Receivables                                   51,622                47,892
  Inventories                                   25,727                25,062
  Prepaid and other                              3,706                 3,968
                                          ------------      ----------------
    Total current assets                       105,716                93,212

Long-Term Assets
  Cash restricted                               25,857                33,388
  Properties                                   268,359               278,617
  Investments                                    7,253                 8,598
  Notes receivable                               5,298                 5,475
  Deferred income tax                           10,197                10,303
                                          ------------      ----------------
                                               316,964               336,381
                                          ------------      ----------------
                                          E    422,680      E        429,593
                                          ============      ================

                                  LIABILITIES

Current Liabilities
  Accounts payable and accrued expenses   E     36,365      E         51,916
  Notes payable                                  8,502                 7,392
  Debt                                          19,193                18,360
                                          ------------      ----------------
    Total current liabilities                   64,060                77,668

Long-Term Liabilities
  Debt                                         208,584               216,871
  Other                                          3,043                 3,441
                                          ------------      ----------------
                                               211,627               220,312
                                          ------------      ----------------
    Total liabilities                          275,687               297,980

                              SHAREHOLDERS' EQUITY

Shares of beneficial interest                   76,722                76,722
Retained earnings                               72,267                59,111
Accumulated other comprehensive loss            (1,996)               (4,220)
                                          ------------      ----------------
                                               146,993               131,613
                                          ------------      ----------------
                                          E    422,680      E        429,593
                                          ============      ================

</TABLE>


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


                                        3

<PAGE>

                            MERCER INTERNATIONAL INC.

          CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
                  FOR SIX MONTHS ENDED JUNE 30, 2002 AND 2001
                                  (UNAUDITED)
              (EUROS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)

<TABLE>
<CAPTION>

                                               2002          2001
                                            ----------    ----------
<S>                                         <C>           <C>
Revenues
  Sales                                     E  119,535    E  112,404
  Transportation                                 2,753         2,772
  Other                                          5,574         5,575
                                            ----------    ----------
                                               127,862       120,751
Expenses
  Cost of pulp and paper                       104,603        93,004
  Transportation                                 2,478         2,031
  General and administrative                    14,396         9,452
  Interest expense                               8,099         8,366
  (Gain) loss on foreign currency
    derivative contracts                       (14,881)        2,846
                                            ----------    ----------
                                               114,695       115,699
                                            ----------    ----------

Income before income taxes                      13,167         5,052
Income taxes                                        11            29
                                            ----------    ----------
Net income                                      13,156         5,023

Retained earnings, beginning of period          59,111        61,934
                                            ----------    ----------

Retained earnings, end of period            E   72,267    E   66,957
                                            ==========    ==========

Earnings per share
  Basic                                     E     0.78    E     0.30
                                            ==========    ==========
  Diluted                                   E     0.77    E     0.29
                                            ==========    ==========

</TABLE>


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


                                        4

<PAGE>

                            MERCER INTERNATIONAL INC.

           CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
                  FOR THREE MONTHS ENDED JUNE 30, 2002 AND 2001
                                   (UNAUDITED)
               (EUROS IN THOUSANDS, EXCEPT FOR EARNINGS PER SHARE)

<TABLE>
<CAPTION>

                                               2002          2001
                                            ----------    ----------
<S>                                         <C>           <C>
Revenues
  Sales                                     E   60,328    E   55,608
  Transportation                                 1,337         1,477
  Other                                          1,910         2,933
                                            ----------    ----------
                                                63,575        60,018
Expenses
  Cost of pulp and paper                        50,684        48,580
  Transportation                                 1,436           927
  General and administrative                     7,766         5,591
  Interest expense                               4,081         4,522
  (Gain) loss on foreign currency
    derivative contracts                       (18,948)          308
                                            ----------    ----------
                                                45,019        59,928
                                            ----------    ----------

Income before income taxes                      18,556            90
Income taxes                                        11            29
                                            ----------    ----------
Net income                                      18,545            61

Retained earnings, beginning of period          53,722        66,896
                                            ----------    ----------

Retained earnings, end of period            E   72,267    E   66,957
                                            ==========    ==========

Earnings per share
  Basic                                     E     1.10    E     0.00
                                            ==========    ==========
  Diluted                                   E     1.08    E     0.00
                                            ==========    ==========

</TABLE>


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


                                        5

<PAGE>

                            MERCER INTERNATIONAL INC.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                   FOR SIX MONTHS ENDED JUNE 30, 2002 AND 2001
                                   (UNAUDITED)
                              (EUROS IN THOUSANDS)

<TABLE>
<CAPTION>

                                               2002          2001
                                            ----------    ----------
<S>                                         <C>           <C>

Net income                                  E   13,156    E    5,023

Other comprehensive income:
  Foreign currency translation adjustments       3,513           233
  Unrealized (loss) gain on securities          (1,289)          988
                                            ----------    ----------

  Other comprehensive income                     2,224         1,221
                                            ----------    ----------

Total comprehensive income                  E   15,380    E    6,244
                                            ==========    ==========

</TABLE>


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


                                        6

<PAGE>

                            MERCER INTERNATIONAL INC.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                  FOR THREE MONTHS ENDED JUNE 30, 2002 AND 2001
                                   (UNAUDITED)
                              (EUROS IN THOUSANDS)
<TABLE>
<CAPTION>



                                               2002          2001
                                            ----------    ----------
<S>                                         <C>           <C>

Net income                                  E   18,545    E       61

Other comprehensive income:
  Foreign currency translation adjustments       2,186          (608)
  Unrealized (loss) gain on securities          (2,148)          309
                                            ----------    ----------

  Other comprehensive income (loss)                 38          (299)
                                            ----------    ----------

Total comprehensive income (loss)           E   18,583    E     (238)
                                            ==========    ==========

</TABLE>


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


                                        7

<PAGE>

                            MERCER INTERNATIONAL INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                   FOR SIX MONTHS ENDED JUNE 30, 2002 AND 2001
                                   (UNAUDITED)
                              (EUROS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                    2002          2001
                                                 ----------    ----------
<S>                                              <C>           <C>
Cash Flows from Operating Activities:
  Net income                                     E   13,156    E    5,023
  Adjustments to reconcile net income
    from operations to cash
      Depreciation and amortization                  13,489        11,593

  Changes in current assets and liabilities
      Investments                                     3,965          (910)
      Inventories                                      (629)        1,941
      Receivables                                    (2,639)        5,242
      Accounts payable and accrued expenses         (16,797)       (2,692)
      Other                                             374           (10)
                                                 ----------    ----------
         Net cash provided by operating
           activities                                10,919        20,187

Cash Flows from Investing Activities:
  Purchases of fixed assets,
    net of investment grants                         (1,710)       (4,923)
  Decrease in note receivable                             -         4,790
  Other                                                 (11)           65
                                                 ----------    ----------
         Net cash used in investing
           activities                                (1,721)          (68)

Cash Flows from Financing Activities:
  Cash restricted                                     7,532         1,530
  Increase in indebtedness                            4,170             -
  Decrease in indebtedness                           (9,727)      (23,685)
                                                 ----------    ----------
         Net cash provided by (used in)
           financing activities                       1,975       (22,155)

Effect of exchange rate changes on cash and
  cash equivalents                                      (41)       (1,063)
                                                 ----------    ----------

Net increase (decrease) in cash
  and cash equivalents                               11,132        (3,099)

Cash and cash equivalents,
  beginning of period                                11,741        19,691
                                                 ----------    ----------
Cash and cash equivalents, end of period         E   22,873    E   16,592
                                                 ==========    ==========

</TABLE>


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


                                        8

<PAGE>

                            MERCER INTERNATIONAL INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       FOR SIX MONTHS ENDED JUNE 30, 2002
                                   (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, 2001. 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.     REPORTING  CURRENCY

Effective  January  1, 2002, the Company changed its reporting currency from the
U.S.  dollar  to  the  Euro. The reason for this change is because a significant
majority  of  the  Company's business transactions are originally denominated in
Euros.  The  Company's  functional  currency  and reporting currency are now the
same.  Prior  years' financial statements had been reported in U.S. dollars, but
have  been  restated  into  Euros  using  the guidance of Statement of Financial
Accounting  Standards  No.  52,  "Foreign  Currency  Translation"  ("SFAS  52").
Therefore,  the financial statements for prior years depict the same trends that
the  previous  financial  statements  presented  in  U.S.  dollars  show.

The Euro was initially implemented by the European Community on January 1, 1999.
By adopting the Euro as the Company's reporting currency, most of the cumulative
foreign  currency  translation losses were eliminated from the Company's balance
sheets  and most of the foreign currency translation losses were eliminated from
the  Company's statements of comprehensive income.  Prior to the restatement, at
December  31,  2001, there was a cumulative foreign currency translation loss of
$64,016  (in thousands of U.S. dollars) included as part of shareholders' equity
in the balance sheet.  In conjunction with the restatement, the majority of this
amount  was  eliminated.  During the six months ended June 30, 2001, there was a
foreign  currency  translation  loss  of  $13,004 (in thousands of U.S. dollars)
included  as  part  of  comprehensive  income  (loss).  In  conjunction with the
restatement,  the  majority  of  this  amount  was  eliminated.

For periods prior to 1999, when the Company's functional currency was the German
deutschmark, the financial statements were restated using a fixed rate of 0.5113
Euros  to  each  deutschmark.  As a result of using the fixed exchange rate, the
Company's  consolidated  financial  statements  for  those  periods  may  not be
comparable  to  the  financial  statements  of  companies  from  other countries
reporting  in  the  Euro.


                                        9

<PAGE>

NOTE  3.     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 for the six months and three months
ended  June  30,  2002  and  2001, respectively.  The weighted average number of
shares  outstanding  for  the purposes of calculating diluted earnings per share
was  17,054,998  and 17,154,277 for the six months ended June 30, 2002 and 2001,
respectively,  and 17,093,390 and 17,089,806 for the three months ended June 30,
2002  and  2001,  respectively.

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>

                                                 Pulp        Paper        Total
                                               ---------   ---------    ---------
                                                      (Euros in thousands)
<S>                                            <C>         <C>          <C>
Six Months Ended June 30, 2002
------------------------------
Sales to external customers                    E  68,084   E  51,451    E 119,535
Intersegment net sales                             2,925           -        2,925
Segment profit                                    13,039       3,376       16,415

Reconciliation of profit:
  Total profit for reportable segments                                  E  16,415
  Elimination of intersegment profits                                         833
  Unallocated amounts, other corporate expenses                            (4,081)
                                                                        ---------

    Consolidated income before income taxes                             E  13,167
                                                                        =========

Six Months Ended June 30, 2001
------------------------------
Sales to external customers                    E  80,449   E  31,955    E 112,404
Intersegment net sales                             3,608           -        3,608
Segment profit                                     7,251         876        8,127

Reconciliation of profit:
  Total profit for reportable segments                                  E   8,127
  Elimination of intersegment profits                                         671
  Unallocated amounts, other corporate expenses                            (3,746)
                                                                        ---------

    Consolidated income before income taxes                             E   5,052
                                                                        =========

</TABLE>


                                       10

<PAGE>

<TABLE>
<CAPTION>

                                                 Pulp        Paper        Total
                                               ---------   ---------    ---------
                                                      (Euros in thousands)
<S>                                            <C>         <C>          <C>
Three Months Ended June 30, 2002
--------------------------------
Sales to external customers                    E  34,451   E  25,877    E  60,328
Intersegment net sales                             1,524           -        1,524
Segment profit                                    18,906         596       19,502

Reconciliation of profit:
  Total profit for reportable segments                                  E  19,502
  Elimination of intersegment profits                                         456
  Unallocated amounts, other corporate expenses                            (1,402)
                                                                        ---------

    Consolidated income before income taxes                             E  18,556
                                                                        =========

Three Months Ended June 30, 2001
--------------------------------
Sales to external customers                    E  40,763   E  14,845    E  55,608
Intersegment net sales                             1,762           -        1,762
Segment profit                                     1,272         801        2,073

Reconciliation of profit:
  Total profit for reportable segments                                      2,073
  Elimination of intersegment profits                                         379
  Unallocated amounts, other corporate expenses                            (2,362)
                                                                        ---------

    Consolidated income before income taxes                             E      90
                                                                        =========

</TABLE>

                                       11

<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  and  Switzerland.  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,  2002  should  be read in
conjunction  with  the  consolidated  financial  statements  and  related  notes
included  in  this quarterly report, as well as the Company's most recent annual
report  on  Form 10-K for the fiscal year ended December 31, 2001 filed with the
U.S.  Securities  and  Exchange  Commission.  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.

Effective  January  1, 2002, the Company changed its reporting currency from the
U.S.  dollar  to  the  Euro, as a significant majority of the Company's business
transactions  are  originally  denominated in Euros.  As a result, the Company's
financial  statements  for  prior periods included in this quarterly report have
been  restated  to  Euros,  but depict the same trends as previously shown.  The
Company translates foreign assets and liabilities 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.  The period end exchange rate for the
U.S. dollar to the Euro as at June 30, 2002 was Euro 1.0144.  The period average
exchange rates for the U.S. dollar to the Euro for the six month and three month
periods ended June 30, 2002 were Euro 1.1143 and Euro 1.0884, respectively.  See
Note  2 to the interim period consolidated financial statements included in this
quarterly  report.

RESULTS OF OPERATIONS - Six Months Ended June 30, 2002
---------------------   ------------------------------

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

<TABLE>
<CAPTION>

                                       SIX MONTHS ENDED JUNE 30,
                                 -------------------------------------
                                     2002                     2001
                                 ------------             ------------
                                               (unaudited)
                                          (Euros in thousands)
<S>                              <C>                      <C>
SALES BY PRODUCT CLASS
Specialty papers(1)              E     40,986             E     19,599
Printing papers                        10,465                   12,356
Pulp                                   68,084                   80,449
                                 ------------             ------------
Total(2)                         E    119,535             E    112,404
                                 ============             ============
SALES BY GEOGRAPHIC AREA
Germany                          E     46,925             E     53,021
European Union(3)                      40,170                   39,690
Eastern Europe and other               32,440                   19,693
                                 ------------             ------------
Total(2)                         E    119,535             E    112,404
                                 ============             ============
SALES BY VOLUME                                 (tonnes)
Specialty papers(1)                    31,870                   20,909
Printing papers                        12,207                   13,848
Pulp                                  149,798                  142,082
                                 ------------             ------------
Total(2)                              193,875                  176,839
                                 ============             ============

</TABLE>

-------------------
(1)  The Company acquired its specialty paper mill in Landqart, Switzerland
     in December 2001.  These amounts include the results from the Landqart
     mill  as  of  January  1,  2002.
(2)  Excluding  intercompany  sales.
(3)  Not  including  Germany.


                                       12

<PAGE>

In  the six months ended June 30, 2002, revenues increased by approximately 5.9%
to  Euro  127.9 million from Euro 120.8 million in the six months ended June 30,
2001,  primarily  as  a  result of increased sales of specialty papers resulting
from  the  acquisition  of  the  paper mill in Landqart, Switzerland in December
2001.  In  the six months ended June 30, 2002, pulp and paper revenues increased
by approximately 6.3% from the comparable period of 2001, on a 15.4% decrease in
pulp  sales  and  a  61.0%  increase  in  paper  sales.

Pulp  sales in the six months ended June 30, 2002 decreased to Euro 68.1 million
from  Euro  80.4  million  in  the comparable period of 2001, as global economic
weakness  and  high  producer inventory levels lead to lower prices. List prices
for  kraft  pulp in Europe decreased from approximately Euro 755 (U.S. $710) per
tonne at the end of 2000 to approximately Euro 528 (U.S. $470)  per tonne at the
end  of  2001,  approximately  Euro 505 (U.S. $440)  per tonne at the end of the
first  quarter  of  2002 and approximately Euro 477 (U.S. $470) per tonne at the
end  of  the  second  quarter  of  2002.

Paper sales in the six months ended June 30, 2002 increased to Euro 51.5 million
from  Euro  32.0  million  in the comparable period of 2001.  Sales of specialty
papers in the six months ended June 30, 2002 increased to Euro 41.0 million from
Euro  19.6  million  in  the  six months ended June 30, 2001, as a result of the
acquisition of the Landqart mill.  On average, prices realized by the Company in
the  six  months  ended  June  30,  2002  for  specialty  papers  increased  by
approximately  37.2%  and  for  printing papers decreased by approximately 3.9%,
compared  to  the  same  period  in  2001.

Expenses  decreased  to Euro 114.7 million in the six months ended June 30, 2002
from Euro 115.7 million in the comparable period of 2001.  Operating expenses in
the  current period increased from the comparable period of 2001, primarily as a
result  of  the  inclusion of the results of the Landqart mill.  On average, the
Company's  unit fibre costs for pulp production in the six months ended June 30,
2002 decreased by approximately 7.5%, compared to the same period in 2001.  As a
result of the acquisition of the Landqart mill, waste paper no longer represents
a  significant  portion  of  the  fibre  used  at  the  Company's  paper  mills.

General  and  administrative  expenses increased to Euro 14.4 million in the six
months  ended  June  30, 2002 from Euro 9.5 million in the six months ended June
30,  2001, primarily due to increased administrative expenses as a result of the
acquisition of the Landqart mill and an increase in professional fees, costs and
expenses.  Interest  expense  in the six months ended June 30, 2002 decreased to
Euro  8.1  million  from  Euro  8.4  million  in  the comparable period of 2001,
primarily  as  a  result of payments made on outstanding indebtedness during the
current  period.

Total  expenses  in  the  current period decreased from the comparable period of
2001,  due  to a gain recognized on foreign currency derivative contracts during
the  current  period.  The  Company  recorded a gain of Euro 14.9 million on its
foreign  currency  derivative  contracts  in the six months ended June 30, 2002.
See  "Item  3.  Quantitative  and Qualitative Disclosures About Market Risk" for
information  with  respect  to  foreign  currency  derivatives.

For  the  six  months  ended  June  30,  2002, net income increased to Euro 13.2
million,  or  Euro  0.78  per share on a basic basis or Euro 0.77 per share on a
diluted  basis,  in  large  part  due to the gain recognized on foreign currency
derivative  contracts in the current period, from Euro 5.0 million, or Euro 0.30
per  share  on  a  basic basis or Euro 0.29 per share on a diluted basis, in the
comparable  period  of  2001.


                                       13

<PAGE>

RESULTS OF OPERATIONS - Three Months Ended June 30, 2002
---------------------   --------------------------------

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

<TABLE>
<CAPTION>

                                     THREE MONTHS ENDED JUNE 30,
                               ----------------------------------------
                                   2002                       2001
                               ------------               -------------
                                              (unaudited)
                                          (Euros in thousands)
<S>                            <C>                        <C>
SALES BY PRODUCT CLASS
Specialty papers(1)            E     20,549               E       8,973
Printing papers                       5,328                       5,872
Pulp                                 34,451                      40,763
                               ------------               -------------
Total(2)                       E     60,328               E      55,608
                               ============               =============
SALES BY GEOGRAPHIC AREA
Germany                        E     22,556               E      24,466
European Union(3)                    22,402                      21,318
Eastern Europe and other             15,370                       9,824
                               ------------               -------------
Total(2)                       E     60,328               E      55,608
                               ============               =============
SALES BY VOLUME                                (tonnes)
Specialty papers(1)                  15,432                       9,865
Printing papers                       6,093                       6,799
Pulp                                 76,300                      80,340
                               ------------               -------------
Total(2)                             97,825                      97,004
                               ============               =============

</TABLE>

-------------------
(1)  The Company  acquired its specialty paper mill in Landqart, Switzerland
     in  December 2001.  These amounts include the results from the Landqart
     mill for  the  second  quarter  of  2002.
(2)  Excluding  intercompany  sales.
(3)  Not  including  Germany.

In  the  three  months  ended June 30, 2002, revenues increased by approximately
5.9%  to Euro 63.6 million from Euro 60.0 million in the three months ended June
30, 2001, primarily as a result of increased sales of specialty papers resulting
from  the  acquisition  of  the  paper mill in Landqart, Switzerland in December
2001.  In  the  three  months  ended  June  30,  2002,  pulp  and paper revenues
increased  by  approximately 8.5% from the comparable period of 2001, on a 15.5%
decrease  in  pulp  sales  and  a  74.3%  increase  in  paper  sales.

Pulp  sales  in  the  three  months  ended  June 30, 2002 decreased to Euro 34.5
million  from  Euro  40.8  million  in  the comparable period of 2001, as global
economic  weakness and high producer inventory levels lead to lower prices. List
prices  for  kraft  pulp  in  Europe decreased from approximately Euro 755 (U.S.
$710)  per  tonne  at  the end of 2000 to approximately Euro 528 (U.S. $470) per
tonne  at  the  end of 2001, approximately Euro 505 (U.S. $440) per tonne at the
end of the first quarter of 2002 and approximately Euro 477 (U.S.$470) per tonne
at  the  end  of  the  second  quarter  of  2002.

Paper  sales  in  the  three  months  ended June 30, 2002 increased to Euro 25.9
million  from  Euro  14.8  million  in  the comparable period of 2001.  Sales of
specialty  papers in the three months ended June 30, 2002 increased to Euro 20.5
million  from  Euro  9.0  million  in the three months ended June 30, 2001, as a
result  of the acquisition of the Landqart mill.  On average, prices realized by
the  Company  in  the  three  months  ended  June  30, 2002 for specialty papers
increased  by  approximately  46.4%  and  for  printing  papers  increased  by
approximately  1.3%,  compared  to  the  same  period  in  2001.

Expenses  decreased to Euro 45.0 million in the three months ended June 30, 2002
from Euro 59.9 million in the comparable period of  2001.  Operating expenses in
the  current period increased from


                                       14

<PAGE>

the  comparable period of 2001, primarily as a result  of  the  inclusion of the
results of  the Landqart mill.  On  average,  the  Company's  unit  fibre  costs
for pulp  production  in  the  three  months  ended  June 30,  2002 decreased by
approximately 7.1%, compared to the same period in 2001.  As  a  result  of  the
acquisition of the Landqart mill, waste paper no longer represents a significant
portion of the fibre used at the Company's paper mills.

General  and  administrative expenses increased to Euro 7.8 million in the three
months  ended June 30, 2002 from Euro 5.6 million in the three months ended June
30,  2001, primarily due to increased administrative expenses as a result of the
acquisition of the Landqart mill and an increase in professional fees, costs and
expenses.  Interest expense in the three months ended June 30, 2002 decreased to
Euro  4.1  million  from  Euro  4.5  million  in  the comparable period of 2001,
primarily  as  a  result of payments made on outstanding indebtedness during the
current  period.

Total  expenses  in  the  current period decreased from the comparable period of
2001,  due  to a gain recognized on foreign currency derivative contracts during
the  current  period.  The  Company  recorded a gain of Euro 18.9 million on its
foreign  currency  derivative contracts in the three months ended June 30, 2002.
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, 2002, net income increased to Euro 18.5
million,  or  Euro  1.10  per share on a basic basis or Euro 1.08 per share on a
diluted  basis,  in  large  part  due to the gain recognized on foreign currency
derivative  contracts  in  the current period, from Euro 0.1 million, or nil per
share  on  a  basic  and  diluted  basis,  in  the  comparable  period  of 2001.

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
                                        JUNE 30, 2002      DECEMBER 31, 2001
                                        -------------      -----------------
                                                   (unaudited)
                                              (Euros in thousands)
<S>                                     <C>                <C>
FINANCIAL POSITION
Working capital                          E   41,656            E    15,544
Property, plant and equipment (net)         268,359                278,617
Total assets                                422,680                429,593
Long-term debt                              208,584                216,871
Shareholders' equity                        146,993                131,613

</TABLE>

At  June  30,  2002,  the Company's cash and cash equivalents totalled Euro 22.9
million,  a  net  increase  of  approximately  Euro  11.1 million from Euro 11.7
million  at  December  31,  2001.  At  June 30, 2002, the Company had short-term
trading  securities  totalling Euro 1.8 million, compared to Euro 4.5 million at
December  31,  2001.


                                       15

<PAGE>

Operating  Activities
---------------------

Operating  activities provided cash of Euro 10.9 million in the six months ended
June  30,  2002,  compared  to Euro 20.2 million in the same period in 2001.  An
increase  in  receivables  used  cash of Euro 2.6 million in the current period,
compared  to a decrease in receivables providing cash of Euro 5.2 million in the
comparative period of 2001.  A decrease in accounts payable and accrued expenses
used  cash  of Euro 16.8 million in the six months ended June 30, 2002, compared
to  Euro  2.7  million in the six months ended June 30, 2001. Higher inventories
used cash of Euro 0.6 million in the six months ended June 30, 2002, compared to
lower  inventories  providing  cash  of Euro 1.9 million in the six months ended
June  30,  2001.  A  net decrease in investment securities provided cash of Euro
4.0 million in the six months ended June 30, 2002, compared to a net increase in
investment  securities  using cash of Euro 0.9 million in the comparative period
of  2001.

Investing  Activities
---------------------

Investing activities in the six months ended June 30, 2002 used cash of Euro 1.7
million,  which  consisted primarily of net purchases of properties, compared to
using  cash  of  Euro  0.1  million  in  the  six  months  ended  June 30, 2001.

The Company completed a major capital project to convert its Rosenthal pulp mill
from  the  production  of  sulphite  pulp  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.

Financing  Activities
---------------------

Financing  activities  provided cash of Euro 2.0 million in the six months ended
June 30, 2002 as a decrease in restricted cash related to the Conversion Project
provided  cash  of  Euro  7.5  million in the current period.  A net decrease in
indebtedness  used cash of Euro 5.6 million in the current period, including the
repayment  of  Euro  6.2 million of indebtedness incurred in connection with the
Conversion  Project.  Financing activities used cash of Euro 22.2 million in the
six  months  ended  June  30,  2001,  primarily  as a result of the reduction of
indebtedness  during  the  period.

Effective  January  2000,  the Company agreed, subject to certain conditions, to
acquire an 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,  a  shareholder  removed  itself  from the Stendal Project
pursuant to a corporate reorganization and its pro rata share of the project was
redistributed  among  the  remaining  shareholders  for  a  nominal  amount.  In
addition,  in  2002 a shareholder agreed to transfer to the Company the pro rata
share  of  the  project  distributed  to  it as a result of the removal from the
Stendal  Project of the former shareholder.  Given the increase in the Company's
participation  in the Stendal Project, pursuant to the terms of the subscription
agreement,  the  Company's participation in the Stendal Project will increase to
approximately  63%.  The increase in ownership is subject to certain conditions,
including  the  entering  into  of  a  formal  shareholders'  agreement  and the
completion of financing in connection with the project.  The Stendal Project has
received  the necessary permits for the construction of the Stendal mill as well
as German federal and state grants and subsidies.  The Company has been notified
by  the  European  Union that such German federal and state grants and subsidies
comply with the European Union guidelines applicable to


                                       16

<PAGE>

investments  in  the former East Germany.  The Company  is  in  the  process  of
concluding the financing  requirements  for  the Stendal Project.  Financing for
the Stendal Project will consist of a combination of third party debt financing,
for which the Company has received a financing commitment letter from  a  German
bank, as well as an equity contribution by the Company.  Due to the  timing  and
the complexity of the Stendal Project, it is anticipated that a significant part
of  the  equity  contribution to be made by the Company will be financed  on  an
interim basis.  The Stendal Project is currently estimated to cost approximately
Euro 884.2 million and to be completed in 2004.  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,
2002,  although  it is considering a number of initiatives relating to potential
acquisitions  and  joint ventures both in Europe and North America.  The Company
anticipates  that  there will be acquisitions of businesses, the redeployment of
assets  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, issuances of securities and/or
borrowing  against  and/or  the  sale  of  assets.

Foreign  Currency
-----------------

Effective  January  1, 2002, the Company changed its reporting currency from the
U.S.  dollar  to  the  Euro  as a significant majority of the Company's business
transactions  are  originally  denominated in Euros.  By adopting the Euro, most
cumulative  foreign  currency translation losses of the Company were eliminated.
However, the Company holds certain assets and liabilities in U.S. dollars, Swiss
francs and, to a lesser extent, in Canadian dollars.  Accordingly, the Company's
consolidated  financial  results  are  subject to foreign currency exchange rate
fluctuations.

The  Company translates U.S. dollar, Swiss franc and Canadian dollar denominated
assets  and  liabilities into Euros at the rate of exchange on the balance sheet
date.  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.

The  Company's  cumulative foreign exchange translation gain increased from Euro
1.3  million  at  December  31,  2001  to  Euro  4.8  million  at June 30, 2002.

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

<TABLE>
<CAPTION>

                           QUARTER ENDED                    QUARTER ENDED
                           JUNE 30, 2002                    JUNE 30, 2001
                   ----------------------------     ----------------------------
                   PERIOD END    PERIOD AVERAGE     PERIOD END    PERIOD AVERAGE
                   ----------    --------------     ----------    --------------
<S>               <C>            <C>                <C>           <C>
RATE OF EXCHANGE
Euro                 1.0144          1.0884           1.1800          1.1452

</TABLE>

Based  upon  the  period  average exchange rate in the six months ended June 30,
2002,  the U.S. dollar decreased by approximately 0.7% in value against the Euro
since  December  31,  2001.


                                       17

<PAGE>

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.

Stendal  Pulp  Mill  Project  Uncertainties
-------------------------------------------

The  Company's  participation  in  the  Stendal  Project  is  subject to certain
conditions,  including  the  completion  of financing.  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, including the 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  is  also 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  in  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.


                                       18

<PAGE>

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.  As a result of the change in the Company's
reporting  currency  from  the U.S. dollar to the Euro, the Company is no longer
sensitive to foreign currency exchange rate fluctuations in connection with cash
restricted.  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.

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  notional  amount outstanding at June 30, 2002 was Euro 211.1
million  and there was a fair value gain of Euro 16.0 million on these contracts
as  at   June  30,  2002.  These   foreign  currency  forward  rate  swaps  were
subsequently  settled  and realized in July 2002 at a gain of Euro 13.9 million,
which  was  accrued  for  in  the  current  period.  A currency gain of Euro 0.2
million  was  recognized  when loan repayments were made under the currency swap
contracts  during  the  current  period.

As a consequence of the settlement of these foreign currency forward rate swaps,
interest on these swaps will be paid from April 1, 2002 to September 29, 2002 at
the  six-month  Euribor plus bank margin rate and 4.5% fixed rate including bank
margin,  as  applicable, in accordance with the terms of the original underlying
loans.

Subsequently  in July 2002, the Company renewed these previously settled foreign
currency  forward  rate  swaps  in  terms  of  both  the  currency  and interest
components.  The  interest component of the swaps is required under the terms of
the  facility  agreement  related  to  the Company's long-term indebtedness, and
becomes  effective  for  the  period  starting  September  30,  2002.   For  the
outstanding  principal amounts of Euro 74.5 million and Euro 130.4 million under
the  facility  agreement,  all  repayment  instalments  from  September 30, 2002
until September  30,  2013  and  September 30,  2008, respectively, were swapped
into U.S.  dollar  amounts  at  a  rate  of Euro  1.0050.   The  interest  rates
were  swapped  into  the  six-month  U.S. dollar/Libor plus bank margin rate and
three-month  U.S.  dollar/Libor  rate, respectively, with a cap on both of these
floating  interest  rates  of  6.8%  until  September  28,  2007.

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,
which  matured  in the second quarter of 2002 and a net gain of Euro 0.2 million
was  recognized  in  the  current  period.


                                       19

<PAGE>

During  the  second  quarter of 2002, two U.S.$10 million forward contracts were
sold  and  bought,  effectively cancelling out each other, and a holding gain of
Euro  0.6 million was recognized.  These contracts are to mature in the third or
fourth  quarter  of  2002.

As  at  June  30, 2002, 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.

In July 2002, the Company sold a U.S. dollar/Euro forward contract in the amount
of  U.S.$20  million.  The  contract  is  to  mature  in  March  2003.

Reference is made to the Company's annual report on Form 10-K for the year ended
December  31,  2001  for  additional  information  concerning  market  risk.


                                       20

<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

      99.1  Certificate  of  Chief  Executive  Officer

      99.2  Certificate  of  Chief  Financial  Officer

(b)   REPORTS  ON  FORM  8-K

      None.


                                       21

<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,  2002


                                       22