The paper manufacturer said the new division, Arjowiggins Graphic, marks the next phase of the new organisational structure announced by French parent Sequana last year.
David Cook, formerly Arjowiggins' UK and Ireland sales and marketing director, has also been promoted to the role of UK managing director of Arjowiggins Graphic.
He said: "Today's announcement signals a significant step forward for our business and underpins our long-term strategy of developing papers with the highest environmental credentials.
"Under the new organisational structure, we will be able to deliver improved operational performance and efficiency to our customers with a focus on coated and uncoated recycled papers offering unparalleled quality."
Cook said the new division has increased the headcount of staff at Arjowiggins Graphic, which now has 1,700 employees.
Arjowiggins vice president Christophe Andre has also taken on the role of general manager of the Graphic division.
In June last year, Sequana announced that Arjowiggins' fine and thin paper activities would be "ultimately integrated" within paper merchant Antalis.
Sequana said following the reorganisation, its two subsidiaries will benefit more from each other's strengths.
Arjowiggins creates new subdivision for recycled paper
Arjowiggins has said it will bring together its coated and uncoated recycled paper divisions to create a subdivision to focus on the development of environmental papers.
