EU's Citribel Faces Survival Challenge from Subsidized Chinese Citric Acid Rivals
Belgian citric-acid maker Citribel, one of only two plants left in Europe, is under pressure as Chinese producers, backed by subsidies, cut prices while the loss-making firm raises its own rates.
Citribel, a Belgian firm that runs one of the remaining two citric-acid plants in Europe, has been unprofitable for three years running. Rising input costs have compelled the company to lift its product prices, even as Chinese manufacturers, benefiting from government subsidies, are reducing theirs. This price disparity places Citribel in an existential dilemma, reflecting a wider pattern of subsidized Chinese competition across the European chemicals industry.
The Financial Times article cited by Peter Foster and Joe Leahy underscores the competitive squeeze faced by the EU producer. The issue illustrates the challenges European manufacturers encounter when competing with heavily supported foreign rivals, raising concerns about the future of domestic chemical production.
Why it matters
It shows how Chinese subsidies are endangering European manufacturing and could reshape the EU chemicals market.
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