Map Merchant Group is merging the office paper divisions of James McNaughton and MoDo Merchants into a new sales company, in a move that will see MoDo Merchants managing director David Welling leave the company.

A spokeswoman said the move was in response to market conditions, and that the group would focus on its "strongest products".

Map was the name given to New Merchanting Force earlier this year. It encompasses the UK merchanting operations of Hedsorboard, Classic Papers, MoDo Merchants, James McNaughton Paper and Premier Paper.

The changes take effect from 1 January. The firms will operate within a holding company, gm2 Holdings, until a name is announced.

"The changing needs of the UK office papers market required a fresh approach, with a clear need to maximise profitability and opportunities," said Map Merchant Group president Karl-Johan Lindborg.

James McNaughton and MoDo Merchants will continue to operate as separate companies, with separate divisions McNaughton Publishing Papers & Paper Management Services, Printall Screen & Display, and the new office papers division formed from MoDo Office Papers and County Paper London.

James McNaughton Paper Group managing director Ian George will head up gm2 Holdings, while Mike Hoyne, general manager of MoDos graphical division, will become managing director of MoDo Merchants.

Story by Andy Scott