CPI is looking at merging its two big fine paper businesses, CPI Paper and Edwards Dunlop Fine Paper, as the uncertain economic situation looks set to continue into the new year.
In a two phase move CPI is first combining the sales structure of the two businesses, with one state leader, one sales manager, one account team and one customer service team working on behalf of both businesses. Phase two, which has yet to be fully resolved, is likely to involve both businesses working under the CPI Paper brand, with Edwards Dunlop Fine Paper disappearing into the mists of time, although this is far from certain with the company set to canvass its customers first, but a decision and subsequent action is due to be made before the end of Q1 next year..
CPI will continue to run its speciality paper businesses, Raleigh Paper and Boomerang Paper, and will continue to operate its growing office products division under the Edwards Dunlop Office brand.
Phase one has already resulted in CPI retrenching 28 staff. The company has more than 500 employees on its books, and is the country’s second biggest paper merchanting operation, with turnover of some $500m. The move comes virtually 12 months to the day after CPI bought Edwards Dunlop as part of its acquisition of the Red Paper Group.
According to CPI its two fine paper operations are duplicating in areas – they are both major players in the commodity market – which is resulting in higher than necessary costs and some apparent contradiction in its advertising budgets. CPI says it has already realised savings in the back office areas since Edwards Dunlop became part of the company
