On October 6, 2024, the European Union is facing significant opposition from paint manufacturers regarding a proposed 39.7% anti-dumping tariff on Chinese exports of titanium dioxide. The tariff, initiated as a provisional measure in June and awaiting final approval in January, has raised alarms among European producers who warn that it could jeopardize the industrial base of Europe, potentially driving small manufacturers out of the market and prompting larger companies to relocate their operations.
The tariff was introduced following an anti-dumping investigation launched last year. The European Commission has allowed paint manufacturers until October 21 to voice their concerns. Nicolas Dujardin, COO of the French company Oceinde, emphasized the critical nature of this issue, stating, "It’s a matter of survival for these industries," and foreseeing potential bankruptcies.
Paula Salastie, owner of the Finnish firm Teknos, noted that increased titanium dioxide prices would lead to a contraction in supply, resulting in inevitable job losses and a withdrawal of investments from the region. Pedro Serret Salvat, president of PPG's Europe, Middle East, and Africa divisions, echoed these sentiments, asserting that the tariffs would negatively impact the competitiveness of the European sector.
Despite these concerns, it is acknowledged that Western titanium dioxide producers have been severely affected by competition from China, which has seen its production soar from 1.4 million tons in 2008 to over 6 million tons this year, capturing an 83% share of global consumption.
The Financial Times also highlighted the European TiO2 Coalition's report to the Commission, indicating that approximately 1.1 million tons of domestic production have disappeared since 2007, following the closure of five key plants in Europe. Tronox, another European producer, pointed out that the challenges faced by their sector mirror those in critical industries such as batteries, solar panels, and steel. They stressed that titanium dioxide is vital for the aerospace industry, which relies heavily on titanium availability, underscoring the need to protect this sector as a matter of industrial resilience.