He will replace Thomas Park, who will step down from the paper giant on 31 October after six years in the role.

Marchant told PrintWeek that it had been "a year of enormous change" for the company, what with its final exit from manufacturing, refinancing and the AUS$1.2bn reduction in debt over the last 18 months.

He said: "We are now in a position to focus entirely on merchanting and, with two thirds of our business in Europe, it makes sense to move our centre of gravity over here.

"I'm greatly looking forward to working with my outstanding team in shaping the future of Paperlinx globally."

Marchant will continue to be based in the UK and the role of chief executive Europe will not be replaced.

His remuneration comprises a basic salary of £530,000 per annum along with performance-based cash and share bonuses, effectively doubling this amount if he exceeds targets.

Marchant has more than 30 years experience in the paper merchanting industry and was appointed to the chief executive role at Paperlinx Europe on 1 July 2008.

He was previously the managing director of Robert Horne Group, one of Paperlinx's three UK operating merchants.

In a statement, the company said the changes will "reduce corporate costs, will further streamline the organisation following the exit from manufacturing, and will remove a layer of management as reflected in recent announcements".

Last year, Paperlinx announced that it was to abandon paper manufacturing as part of an ongoing process to cut costs.

It is now a sole merchanting company that distributes paper, sign and display and graphics materials, as well as packaging products.   

In February 2009, Paperlinx agreed to sell its Australian manufacturing business Australian Paper for AUD$700m to Japan-based Nippon Paper Group.

A month later, the company posted a AUD$560m after-tax loss for the six months ending 31 December 2008.