China’s Takeover of UK Titanium Dioxide Plant – Another Wake-Up Call on Strategic Industries

Welcome back, team! In this episode of Dave Talks Politics, hi, I’m Dave, and I’ll be talking politics. Today, team, let’s talk about:China’s Takeover of UK Titanium Dioxide Plant – Another Wake-Up Call on Strategic Industries**1. What Just Happened in Teesside**- The UK Competition and Markets Authority has cleared a $70 million deal for China’s LB Group (formerly Lomon Billions), the world’s largest producer of titanium dioxide, to buy the bankrupt Venator plant in Teesside, North East England.- The plant, which employed 270 people, makes titanium dioxide — a critical whitening agent used in paints, plastics, defence applications, and green energy supply chains.- LB Group has promised to restart production and save jobs, which local unions have welcomed.- The decision comes after the plant went into administration last October, with critics arguing it was undermined by Chinese overcapacity and subsidised competition.- Team, this is not just another factory sale — it’s a strategic material now under Chinese control on UK soil.**2. Why European and US Producers Are Alarmed**- The European Titanium Dioxide ad hoc Coalition (representing nearly 90% of EU production) called the decision “extremely disappointing,” warning it will allow LB Group to undercut rivals using Chinese industrial subsidies.- Industry insiders estimate LB Group produces titanium dioxide at around $1,500 per tonne in China (including subsidies) versus $2,800 per tonne in the UK.- Tronox (US owner of the UK’s other TiO2 plant in Grimsby) has already closed its own Chinese facilities, citing unsustainable pricing from Chinese competitors.- China became a massive net exporter after 2010, flooding global markets and contributing to factory closures in Europe, the US, and Asia.- My take: When the world’s largest producer buys distressed Western assets at rock-bottom prices, it’s hard not to see a pattern of subsidised expansion.**3. The Strategic Importance of Titanium Dioxide**- Titanium dioxide is not just a paint pigment — it is a critical material in defence supply chains and green technologies.- Local MP Melanie Onn highlighted the risk to skilled STEM jobs and warned that Chinese-driven price undercutting could make UK production unsustainable.- The UK’s only other plant in Grimsby is now under direct competitive pressure from the new Chinese-owned facility.- The EU has already imposed anti-dumping duties on Chinese TiO2, and the UK’s Trade Remedies Authority has launched its own investigation.- Team, losing control of strategic chemical production quietly hands leverage to China in areas that matter for both defence and the energy transition.**4. The Broader Pattern of Chinese Overseas Acquisitions**- LB Group has been open about using overseas factories to bypass anti-dumping duties and reach end-markets directly.- This fits a wider Chinese strategy of acquiring distressed Western assets in critical materials and technologies during periods of weakness.- Downstream users (paint and coatings industry) oppose duties because they raise costs, creating tension between producers and customers.- The deal highlights the dilemma Western governments face: short-term job saves versus long-term strategic vulnerability.- My take: Accepting Chinese investment to prop up failing plants often looks attractive locally but weakens the industrial base over time.**5. Forward Realism – What the West Should Learn**- Europe and the UK need a clearer strategy for protecting strategic industries rather than case-by-case reviews that often prioritise short-term employment.- Relying on Chinese subsidies to keep factories open is not a sustainable industrial policy — it simply transfers capability and know-how eastward.- The Iran war energy shock and supply-chain disruptions make domestic control of critical materials even more important for resilience.- Governments should consider targeted support, anti-subsidy measures, and friend-shoring for sectors like titanium dioxide that feed defence and green tech.- Forward realism: China plays a patient, long-game industrial strategy. The West keeps treating these as isolated commercial deals. Until that mindset changes, we will continue losing pieces of the strategic supply chain one factory at a time.**Summary of the Story and Its Broader Context**The UK has approved the sale of a bankrupt titanium dioxide plant in Teesside to China’s LB Group, the world’s largest producer, despite strong opposition from European and US manufacturers. Critics argue Chinese industrial subsidies will allow the new owner to undercut rivals, threatening the viability of remaining Western production. Titanium dioxide is a vital material for paints, plastics, defence, and green energy. While the deal may save local jobs in the short term, it fits a pattern of China acquiring distressed Western assets in strategic sectors. The EU has already imposed anti-dumping duties, and the UK is investigating. This case highlights the difficult trade-off Western governments face between immediate economic relief and long-term industrial sovereignty. In an era of great-power competition and supply-chain fragility, allowing control of critical chemical production to shift to China carries real strategic risks. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit wgowbrics.substack.com