Exclusive: EU chemical producers seek probe into Chinese rival

EU titanium dioxide producers have filed a complaint alleging unfair subsidies by Chinese LB Group as it seeks to buy a UK plant to export to the EU, potentially bypassing anti-dumping duties.

European chemical producers of titanium dioxide have urged the European Commission to launch a probe into Chinese producer LB Group amid its attempt to purchase a UK plant from British competitor Venator, according to sources. The producers fear the acquisition could be used to circumvent anti-dumping duties.

A coalition of EU-based titanium dioxide producers, which includes US-based Tronox and Kronos, Czech Precheza, and Slovenian Cinkarna—together representing about 90% of EU titanium dioxide production—lodged an unfair foreign subsidy complaint against LB Group, Euronews has learned.

This follows the European Commission’s January 2025 decision to impose anti-dumping duties on LB Group to target low-priced imports into the EU. Acquiring the UK plant would potentially allow the Chinese company to export to the EU market duty-free under the EU-UK trade agreement, bypassing these tariffs.

The EU chemical sector faces pressure from rising Chinese competition, which is flooding the market with overcapacity.

Complaint filed under Foreign Subsidies Regulation

Sources said the complaint was filed in December 2025, requesting the European Commission investigate LB Group for alleged distortive foreign subsidies financing the acquisition of Venator’s UK plant.

The EU’s Foreign Subsidies Regulation, adopted in 2022, empowers the Commission to probe non-EU companies for distortive foreign subsidies used to acquire EU assets or participate in public procurement. The regulation was initially designed with China in focus but has not yet been applied to companies outside the EU.

The targeted plant is located in Greatham, northeast England. The UK Competition and Markets Authority is currently reviewing the deal, with a decision expected in May.

If the European Commission opens an investigation under the Foreign Subsidies Regulation, it could set a precedent and send a strong global signal.

Meanwhile, the EU chemical industry has lost market share in Europe. According to Cefic, the sector’s Brussels-based trade association, the EU has lost about 9% of its titanium dioxide production capacity since 2022, resulting in the loss of 20,000 direct jobs.