He revealed the plans as the group issued its results for 2001, which showed a 2% fall in sales to 1.2bn (2.1bn).

He said part of the groups strategy would be to build a critical mass of business in Asia, where it has two converting plants in China and one in Australia producing tracing and art paper.

And Arjo will look to reposition certain carbonless-manufacturing mach-ines at its mills to produce other grades of paper.

The group also plans to expand its operations in North America, said Wanecq, where it only has a presence in the speciality coated papers market.

ArjoWiggins will concentrate on value-added products, such as security paper, as Wanecq believes these are less likely to be affected by current economic conditions.

The groups European carbonless operations suffered most, with earnings before interest and tax down from a 3.5m profit in 2000 to a 23.3m loss in 2001.

Operating profits rose 33% to 101m, and Wanecq said he remained optimistic about the outlook for this year. He felt the advertising market would recover, which would benefit the group.

ArjoWiggins employs 7,500 staff at 25 sites, producing carbonless, fine, real art and security papers. Well-known brands include Idem and Conqueror.

Story by Andy Scott