Tariffs on Chinese imports threaten viability of many EU paint makers.

CEPE has expressed its disappointment following publication of the European Commission Implementing Regulation imposing antidumping duties on imports of titanium dioxide (TiO2) from China. TiO2 is a key raw material for coatings makers, accounting for up to 40% of the raw materials cost and 20% of the cost of the finished product.

The duties threaten the viability the ��33 billion/year EU paints sector, which employs some 150,000 people.

“This will have a hugely negative impact on the paints sector, one of the largest users of TiO2,” said Christel Davidson, managing director of CEPE. “With this decision, Member States have expressed a clear preference for a few large global manufacturers of TiO2 over the numerous downstream users in the EU. The companies they say they want to protect most – smaller firms catering for the local EU market – will be the most affected, and many of them may not survive.”

CEPE is concerned that the rise in production costs for EU producers will result in a surge in imports of cheaper paints produced outside the EU using Chinese TiO2 that is not subject to antidumping duties.

“Paint manufacturers in the EU will find themselves at a competitive disadvantage compared to manufacturers in other parts of the world, who can continue sourcing TiO2 from China at lower prices and sell their paints on the EU market,” Davidson said. “This is an unfortunate outcome for a measure meant to shield Europeans from unfair foreign competition. We call on Member States or the European Commission to carry out an immediate review.”