Paper products and stationery manufacturer Climax International is to set up a joint venture with a local stationery supplier.
The joint venture, to be called Office Partners, will be owned by Climax's Easyfil division and a company called Stationery Store, the sole agent for brands such as Unistat, Rocada, Diamond and Filebank in Hong Kong.
Easyfil will hold 70 per cent of the new company, while Stationery Store will control 25 per cent.
The remaining 5 per cent will be in the hands of an independent shareholder.
The new company, which has a 20,000 square foot warehouse at Tai Po, will specialise in direct sales of stationery to offices.
Climax chairman and chief executive Kenneth Fung Kin-yuen said Office Partners would generate up to 10 per cent of the company's annual sales.