As a result of a significant rise in input costs, adverse currency movement and weak demand, Gough said so far 15 paper mills have been closed, taking 2.2m tonnes of capacity out of Europe.
The level of financial failure in the print sector has also been significant, and has "impacted heavily" on the paper merchant sector.

He said: "2009 will be a very challenging year, and we must all rise to the challenge with greater commitment and focus.

"We need to strive for greater efficiency, be closer to customers and suppliers, and be able to differentiate and offer meaningful added value."

Gough said that Robert Horne is doubling its efforts to ensure its product portfolio is robust and that its sourcing is wide-spread and in line with the needs of its customers.

"We won't just be battening down the hatches and hoping to ride out the storm. We will continue to invest in areas that will give our customers greater choice and opportunity," Gough added.

The company said it would continue to help printers enter the wide-format digital market by advising them on hardware and substrates needed to open up new revenue streams and reduce costs.