EU Chemical Producers File Complaint Against Chinese Titan maker LB Group Over Unfair Subsidies
Coalition alleging unfair foreign subsidies seeks Commission investigation into acquisition of UK's Venator plant that could circumvent anti-dumping duties
Hızlı Bakış
- A coalition of EU titanium dioxide producers including Tronox, Kronos, Precheza and Cinkarna has filed a complaint with the European Commission against Chinese producer LB Group, alleging unfair foreign subsidies in its planned acquisition of Venator's UK plant in Greatham.
- The complaint, filed in December 2025, urges investigation under the EU's Foreign Subsidies Regulation, which has never been applied outside the EU before.
- If the Commission opens an investigation, it would set a major precedent, as acquiring the UK plant would allow LB Group to export to the EU duty-free, circumventing anti-dumping tariffs imposed in January 2025.
Yapay zekâ özeti
Neden Önemli?
The EU's Foreign Subsidies Regulation was adopted in 2022 with China specifically in mind, reflecting concerns about state-backed Chinese companies acquiring strategic EU assets. The regulation allows the Commission to investigate non-EU companies benefiting from distortive foreign subsidies. This would be the first application outside the EU, as the UK left the EU in 2020. The EU chemical sector has lost approximately 9% of production capacity since 2022, resulting in 20,000 job losses, according to Cefic.
A coalition of EU-based chemical producers of titanium dioxide – a strategic chemical used in green energy and aerospace – has lodged a complaint with the Commission alleging unfair foreign subsidies against leading Chinese producer LB Group, which is seeking to acquire a UK plant of British competitor Venator, Euronews has learned.
The move follows the European Commission's decision in January 2025 to impose anti-dumping duties on LB Group, a trade defence measure targeting low-priced imports into the EU. Acquiring a production plant in the UK would allow the Chinese group to export its products to the European market duty-free under the EU-UK trade agreement, circumventing EU anti-dumping tariffs.
The EU chemical sector is under pressure from growing competition from Chinese rivals, which are flooding the market with overcapacity. The alliance behind the complaint against LB Group includes several companies producing in the EU — US-based Tronox and Kronos, Czech Precheza and Slovenian Cinkarna — collectively accounting for about 90% of EU titanium dioxide production.
Sources said the complaint was filed in December 2025, urging the European Commission to investigate the Chinese company over alleged unfair foreign subsidies used to finance the acquisition of Venator's plant.
The EU's Foreign Subsidies Regulation, adopted in 2022, allows the Commission to investigate non-EU companies to assess whether they benefit from distortive foreign subsidies to make acquisitions in the EU or take part in public procurement. The tool was initially designed with China in mind, reflecting concerns over excessive state subsidies support for Chinese companies acquiring strategic EU assets or infrastructure. However, the regulation has not yet been applied outside the EU.
The plant targeted by LB Group is located in Greatham in northeast England, which left the EU in 2020 after Brexit. The UK's Competition and Markets Authority is currently reviewing the deal and is expected to issue a decision in May.
If the European Commission opens an investigation under the Foreign Subsidies Regulation, it could set a precedent and send a strong signal globally. The move would come as the EU chemical industry loses market share in Europe. According to Cefic, which represents the sector in Brussels, the bloc has lost around 9% of its production capacity since 2022, resulting in the loss of 20,000 direct jobs.
Bundan Sonra Ne Olabilir?
Yapay zekâ öngörüsü — kesinlik taşımaz
European Commission will open a formal investigation into LB Group's acquisition under the Foreign Subsidies Regulation
Muhtemel · Aylar içinde
UK CMA will approve the acquisition with conditions or request further review
Olası · Aylar içinde
Açık Sorular
- Will the European Commission open a formal investigation?
- What specific subsidies will be alleged?
- Will the UK CMA block the deal on separate grounds?
- How will China respond to potential EU action?
