"The decision to open a China-based operation forms a key part of Paperlinx’s ongoing strategy to be a market-leading materials merchant and to expand revenue streams beyond [our] traditional commercial print offering," said the paper merchant.

"The Shanghai-based office, staffed by local people with local knowledge, will serve both as a sales office for [our] rapidly expanding international trading business and as an Asian sourcing and procurement base for the group’s operations worldwide."

[Related: Paperlinx gets new chairman]

Paperlinx's strategy to diversify into areas like industrial packaging and sign and display prompted the $2 million acquisition of New Zealand business Canterbury Packaging in 2012 and the $1.1 million acquisition of Swedish distributor Cadorit in June.

Executive director Andrew Price said the China office would also help Paperlinx "maximise our buying power".

"Within our Australia, New Zealand and Asia businesses, we source significant volumes of product from China," said Price.

"Opening an office in Shanghai gives us the opportunity to leverage our procurement power globally.

"This will further enhance the group’s supply chain efficiency and better fits with a group-wide commitment to streamline processes, as well as eliminate both cost and inventory duplication."

[Related: Ups and downs of Paperlinx]

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