EU paint manufacturers disappointed by anti-dumping duties on titanium dioxide imports

The EU Commission accuses the Chinese government of artificially depressing prices through subsidies and thereby distorting competition. Following the introduction of temporary punitive tariffs in July, the EU Commission has now spoken out in favor of their permanent introduction. The white pigment TiO2 is an important raw material for paint manufacturers, is used in many coatings, paints and printing inks and accounts for up to 40 percent of raw material costs and 20 percent of the cost of the end product. According to CEPE, the punitive tariffs therefore threaten the viability of the EU paint sector, which has an annual turnover of 33 billion euros and employs around 150,000 people.

EU tariffs on TiO2 have a negative impact on the paint industry

"This decision will have an extremely negative impact on the paint industry, which is one of the biggest users of TiO2," said CEPE Managing Director Christel Davidson. "Member States have expressed a clear preference for a few large, global producers of TiO2 over the many downstream users in the EU. The companies they claim to want to protect the most - smaller firms supplying the local EU market - will now be hit the hardest, and many of them may not survive."

Paint manufacturers in the EU fear competitive disadvantages

CEPE fears that the foreseeable increase in production costs for EU manufacturers will lead to increasing imports of cheaper paints produced outside the EU using Chinese TiO2. "Paint manufacturers in the EU will be at a competitive disadvantage compared to manufacturers in other parts of the world who can continue to source TiO2 from China at lower prices and sell their paints more cheaply on the European market," Davidson commented on the EU decision.