European chemical producers want the Commission to launch a probe into Chinese LB Group as it seeks to purchase a competitor’s plant in the UK to export to the EU, according to sources. The group fears it could be used to get around anti-dumping duties.
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.
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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.
Enforcing the Foreign Subsidies Regulation outside the EU
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.