The proposed tariffs on imports from China could harm the European coatings industry's ability to compete effectively, both within Europe and globally.
CEPE urges member states to reject the European Commission's proposal to impose anti-dumping duties on titanium dioxide (TiO2) imports from China.
TiO2 is a key raw material for coatings manufacturers and accounts for up to 40% of the raw material cost and 20% of the finished product cost. Thus, the duties threaten the viability of the EU paint sector, which is worth EUR 33 billion a year and employs more than 150,000 people.
“Should the member states confirm the proposal, it will heavily impact the paints sector, one of the largest users of TiO2. The commission is demonstrating a short-term approach to EU competitiveness. We fear that the impact of these duties on the paints sector, especially to small companies and related industries such as the construction sector will outweigh any short-term relief for European manufacturers of TiO2,” has stated Christel Davidson, Managing Director of CEPE.
CEPE is also concerned about the broader implications for EU manufacturers that export their products outside Europe. The rise in production costs will make EU-based companies less competitive on the global stage, reducing exports and threatening the market position of European manufacturers.
“European TiO2 suppliers are currently unable to meet the EU industry’s demand and imports from China are thus hard to substitute. One likely consequence is that 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. Overall, investment in the EU paints sector is expected to become less attractive, which will have a direct impact on European suppliers of TiO2. This would be an unfortunate outcome for a measure meant to shield Europeans from unfair foreign competition. We hope that Member States will closely analyse the situation and vote against the decision of the EC to impose these duties when they meet next week,” has concluded Christel Davidson.