NZ paper merchant BJ Ball scores a win in Australia

The private equity-backed supplier is now in effective control of mid-sized merchant, Focus Paper.

Andrew Bull, CEO, denied his intentions to enter the market a month ago. The buyout inserts another contender in the Australian market, which is readjusting following the closure of the Tasmanian Mills.

BJ Ball, the largest merchant in New Zealand, has a strong agency relationship with Nippon Paper Group, owner of Australian Paper. It sells many of the same web grades and is likely to be a close ally to the remaining Australian fine paper manufacturer. Nippon Paper Group is expected to expand its presence in Australia well beyond the marketing of product from the former PaperlinX mills, Maryvale and Kiama mills.

The entry of BJ Ball will ratchet up the competition in an Australian marketplace, already reeling from intense price competition. Leading merchant CPI last week issued a call to action as a result of the tight market conditions. PaperlinX is accelerating the diversification of its business away from straightforward paper merchanting.

BJ Ball has a history of pushing for growth and it is unlikely its new PE owner, Maui Capital, has stumped up the cash only to continue with Focus Paper’s below the radar operation.