Sales director Fred Haines said that demand is a key challenge for the year, and has warned that customers should choose carefully as market consolidation will mean that choice is limited. He added that the withdrawal of credit insurers from the industry will also make 2009 difficult.

However, he also said he has been "pleasantly surprised" at how strong the last quarter has been.

Haines said: "It's easy to be too pessimistic at the moment. I believe that mills and merchants need to sell products that are creative and add value to clients.

"Innovators will stand out in this climate. It's all about providing specialisation and differentiation for clients in order for them to stand out with their customers."

Haines said that providing a wide range of products from specialist, creative grades is imperative.

He also highlighted the need for environmentally friendly, recycled and FSC grades.

"Environmentally friendly products will continue to be high on the agenda as customers and end clients become increasingly aware of their corporate environmental and social responsibilities."

Currently, more than 65% of all papers produced by the company are FSC Chain of Custody certified, and it is aiming for 100% certification.

Haines, the former managing director of paper merchant Premier Paper, started his role as sales director of paper manufacturer Fedrigoni on 1 September 2008.

He left Premier Paper in May after it was acquired by independent merchant Beswick Paper for £19m.
Based in Northampton, Fedrigoni UK has 23 staff and a £10m turnover. The company's group turnover is £480m and it covers the text, cover and niche markets.