A coalition of EU-based titanium dioxide producers has filed a complaint with the European Commission, alleging that China's LB Group is using unfair foreign subsidies to acquire a competitor's plant in the UK and bypass EU anti-dumping duties. This move could reshape supply dynamics for a chemical critical to green energy and aerospace, directly affecting importers and distributors in Europe.
Background of the complaint
Titanium dioxide is a strategic chemical used in green energy, aerospace, and other high-value applications. The complaint, filed in December 2025 under the EU's Foreign Subsidies Regulation, targets LB Group's planned acquisition of a Venator plant in Greatham, northeast England. The coalition includes US firms Tronox and Kronos, Czech Precheza, and Slovenian Cinkarna, which together represent about 90% of EU titanium dioxide production.
Strategic implications for supply chain
The acquisition would allow LB Group to export products duty-free into the EU under the EU-UK trade agreement, circumventing anti-dumping duties imposed by the European Commission in January 2025. This move comes as the EU chemical sector loses market share, with Cefic reporting a 9% drop in production capacity and about 20,000 direct job losses since 2022.
Regulatory and compliance signals
The EU Foreign Subsidies Regulation, adopted in 2022, allows the Commission to investigate companies from third countries benefiting from subsidies that distort competition. If the Commission launches an investigation, it would set a precedent, as the regulation has not yet been applied outside the EU. The UK Competition and Markets Authority is also reviewing the deal, with a decision expected in May.
What buyers should watch
Importers and distributors of titanium dioxide in the EU should monitor the outcome of this complaint closely. If the Commission blocks or conditions the acquisition, it could stabilize pricing and supply from EU producers. Conversely, if LB Group succeeds, it may gain a cost advantage, potentially lowering prices but raising concerns about long-term market dominance and subsidy-driven competition.
China sourcing context
LB Group is a leading Chinese manufacturer of titanium dioxide, benefiting from state support and overcapacity in China. The EU complaint highlights growing tensions between Chinese producers and EU chemical manufacturers, who face pressure from subsidized imports. This case could influence future trade policies and sourcing strategies for other industrial chemicals.
Source: Read the original report | Published: April 19, 2026