Teknos, a Finnish family-owned company, has proposed a phased introduction of antidumping duties on titanium dioxide (TiO₂) to ensure a level playing field for the EU paints and coatings industry. The company argues this approach will maintain competitiveness and help the industry absorb additional costs for its second-largest raw material.

Teknos has submitted two statements in response to the European Commission’s (EC) disclosures on antidumping duties for Chinese-sourced TiO₂. The company highlighted the significant harm it expects these duties will cause to the EU paints and coatings industry, particularly regarding economic competitiveness and sustainability.

"For sufficient availability of TiO₂ in European markets, external supply is essential," Teknos noted, explaining that under normal economic conditions, China supplies approximately 10% of the EU's TiO₂ consumption for paint production. Teknos emphasized that antidumping duties should be carefully implemented to ensure fair trade without creating undue disadvantages.

The company predicts that, in the long term, antidumping duties could reduce demand to match current production capacity instead of encouraging capacity increases to meet demand. An immediate full application of the proposed duties could lead to higher costs, reduced competitiveness, bankruptcies, and production shifts outside the EU.

Teknos proposes a phased implementation, allowing the value chain to adapt over time. For decorative paints, fixed pricing is often required for seasonal contracts negotiated 4-6 months in advance. For industrial coatings, changes can be reviewed quarterly but still require lead times for negotiation and adaptation. Transitioning to non-Chinese TiO₂ suppliers, while maintaining stringent product standards, would take at least 18 months due to research and development, testing, and qualification processes.

While Teknos acknowledges the Commission’s conclusions on dumping activities by Chinese TiO₂ suppliers, it emphasizes the importance of collaborative policymaking to ensure the EU paints and coatings industry remains economically viable, competitive, and sustainable in the long term.

For more information, access Teknos’ full statement here.