The new company, Partnership Paper, which was launched in October last year is affiliated with US based International Forest Products Corporation that represents over 20 paper and pulp mills from Thailand, China, Indonesia, Taiwan and North America.

McGrath has been in the pulp and paper industry for 28 years most recently working for the Australian branch of Asia Pulp and Paper (APP) Synergy Paper. Partnership Paper’s core customers will be paper merchants, however the company will also supply directly to printing, packaging and publishing companies.

McGrath says while a tough year ahead is expected due to the unstable economy, there are opportunities for a new company like Partnership Paper as paper and board buyers shop around for value.

He says, “I see the current financial situation as a positive thing for us as new players, as it is encouraging people to look around for the best price, best terms and just see what else is out there. In a conservative industry, such as ours, credibility and market knowledge is paramount. With the financial strength and strong reputation of IFP, we can offer good terms, superior freight and logistics, what I like to term as the whole package”.

While the Australian paper industry has been hit with a spate of recent price increases due to material costs and a declining Australian dollar, McGrath says while currency value will remain unpredictable, mill prices will remain stable in the short term.

He says, “While paper prices and importing costs are dictated against the US dollar, I can’t see any more mills increasing their prices in the next six months.”

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