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The Finnish coatings manufacturer Teknos warns against the immediate introduction of anti-dumping duties on Chinese titanium dioxide (TiO2). The company proposes a phased approach to prevent disruptions in the EU coatings industry, which relies heavily on this critical raw material.
The European Commission is evaluating anti-dumping duties on titanium dioxide (TiO2) imports from China, a move intended to address alleged unfair trade practices. However, Finnish manufacturer Teknos has raised concerns about the potential economic and operational challenges that an abrupt implementation could pose for the European paints and coatings sector.
Challenges for the coatings industry
TiO2, the second most important raw material in paint production, plays a crucial role in achieving the required quality and performance of coatings. Currently, approximately 10% of the EU’s TiO2 demand is met through imports from China. Teknos emphasizes that transitioning to alternative suppliers would require significant time and investment, citing a minimum of 18 months for necessary R&D, testing, and supplier qualification processes.
The company warns that immediate duties could lead to price increases, reduced competitiveness, and even bankruptcies among EU-based manufacturers. Additionally, this could incentivize investments in production capacity outside the EU, undermining the region’s industrial base.
Impact on supply chains and customer contracts
Teknos highlights the varying timelines and market dynamics across customer groups. For instance, decorative paint contracts are often negotiated months in advance to meet seasonal demand, leaving little flexibility to absorb sudden cost increases. Industrial coatings, while more adaptable, still require time to adjust to significant market changes. The company argues that a phased introduction of duties would allow the value chain to adapt gradually, minimizing disruption.
Teknos acknowledges the findings of the European Commission’s investigation into dumping practices but underscores the importance of balancing trade regulations with the industry’s economic and environmental sustainability. The company calls for collaboration between policymakers and industry stakeholders to ensure a fair and stable market while supporting long-term investments in EU production capacity.
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