Denton resigned from his position at the St Andrew's based firm in February, less than two years after taking up his role.
Although Chapman is from outside the paper industry he has gained some insight into the business having been managing director of reel to reel printer and paper bag manufacturer Bibby & Baron.
Chapman will relocate form his current home in Cheshire to take up his new role with effect from July.
The Scottish independent speciality paper producer has recently refocused its business to concentrate on the markets for graphical, converting, security and speciality publishing papers.
Story by Andy Scott
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