Anti-dumping investigation for epoxy resins: “Restore a level playing field along the value chain” - News and insights for the European coatings industry

At the request of the three epoxy resin manufacturers Olin, Westlake and Spolchemie, the European Commission has launched an anti-dumping investigation into imports of epoxy resins from China, South Korea, Taiwan and Thailand. Florian Kohl, President of Olin Epoxy & International and Managing Director of the Blue Water Alliance, explains why this step is necessary.

Florian Kohl: Imports of epoxy resins from these sources are surging into the EU market at unfairly low prices and are causing significant damage to the entire epoxy resins industry in the EU. To protect the interests of the Union epoxy resin industry, the largest producers have decided to team up and filed a complaint before the European Commission. The European Commission considered that sufficient evidence existed to start an anti-dumping investigation. The ongoing investigation will examine whether unfair trading practices have taken place and caused injury to the EU industry. In such a case, anti-dumping measures can be imposed by the European Commission that will apply on the EU-27 Member States territory.

Kohl: In the United States, the U.S. International Trade Commission and the U.S. Department of Commerce accepted our anti-dumping and countervailing duty (anti-subsidy) petitions and initiated investigations to respond to unfairly traded imports from these countries as well as India. The ITC made a unanimous preliminary determination of material injury to the U.S. domestic industry, and Commerce issued a preliminary determination finding subsidies and imposing provisional duties. In early November, Commerce will issue its preliminary determination regarding the extent that imports from these sources are being sold at less than fair value (commonly termed “dumping”) and will apply provisional antidumping duties. Final dumping, subsidy, and injury determinations are expected in March and April of 2025.

Kohl: While we cannot speculate on other challenges, it is important to understand two important points. First, the preservation of domestic EU epoxy resin production is necessary to secure and strengthen EU supply chains for paint and coating manufacturers and for a wide range of critical industries across the EU. Second, the EU’s medium and long-term economic, energy, and national security cannot be reliant on cheap, unfairly traded imports that operate without regard for market conditions and that leverage massive Chinese and regional oversupply and market distortions to flood the EU market and undermine local industries. In Europe, for example, we have already suffered the impact of unfair trade and unequal conditions in the solar industry, where a reliable local supply is being sacrificed in the face of unfair trade.

This shows that there is a need to engage into broader discussions on value chain in the EU. If our customers are also affected by unfair imports and are concerned that an anti-dumping duty will further affect their competitiveness, they should also take similar action to restore a level playing field along the value chain.

We are confident that the European Commission will apply the rules to discipline the unfairly traded imports and ensure the survival of reliable domestic supplies of epoxy resin.

Kohl: Above all, we are convinced that everyone is interested in fair market competition. These measures are critical to restoring the health of the EU epoxy resin producers and ensuring a level playing field based on true market conditions. A healthy industry means a reliable and plannable supply of the necessary raw materials for the European paint and coating producers and opportunities for local collaboration on new innovations and market development in the future. Absent effective measures, European paint and coatings producers will be entirely dependent on self-interested foreign producers and their governments as well as ever more fragile foreign supply chains that are increasingly undermined by global conflicts and climate change impacts.