EU chemical producers file complaint against Chinese firm LB Group
A coalition of EU titanium dioxide producers has lodged a complaint against Chinese company LB Group over alleged unfair foreign subsidies related to its acquisition of a UK plant.
Since 2022, the EU chemical sector has seen a 9% reduction in production capacity, leading to the loss of 20,000 direct jobs, highlighting significant industrial challenges.
“This complaint underscores our commitment to safeguarding the EU’s strategic sectors against unfair competition and excessive foreign subsidies,” stated a coalition representative.
Key developments
A coalition of EU-based chemical producers has lodged a complaint with the European Commission, alleging that Chinese company LB Group is receiving unfair foreign subsidies in its bid to acquire the UK plant of Venator.
The complaint, submitted in December 2025, contends that LB Group’s acquisition finances violate the EU’s Foreign Subsidies Regulation, which allows investigations into distortive subsidies affecting the EU market.
The UK’s Competition and Markets Authority is reviewing the deal and is expected to announce its decision in May, amidst growing concerns over the EU chemical sector’s market share loss.
Exclusive: EU-based chemical producers ask Commission to probe Chinese group over deal in the UK
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A coalition of EU-based chemical producers of titanium dioxide – a strategic chemical used in green energy and aerospace – has lodged a complaint with to the Commission alleging unfair foreign subsidies against leading Chinese producer LB Group, which is seeking to acquire a UK plant of British competitor Venator, EU News has learned.
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.