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Europe’s citric acid battle with China

Financial Times Companies •
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The Citribel plant in Tienen, Belgium, a stalwart of European chemical manufacturing since 1929, now faces a crushing threat from subsidised Chinese producers. Joris Merckx, its chief executive, says the company has been losing money for three straight years and must either innovate or shut down. The competition originates in Shandong, where a cluster of citric‑acid factories, led by Weifang Ensign Industry, has expanded output from 1 million tonnes in 2012 to 2.2 million tonnes in 2025, largely thanks to state‑backed subsidies. Ensign’s 2025 net profit fell 77 % after one‑off credits lapsed, yet the company continues to add capacity.

EU authorities imposed anti‑dumping duties of up to 42 % on citric acid in 2009, but Chinese producers still sell in Europe at 1 000 €/t, 40–50 % below Citribel’s cost. The EU’s response has been slow, prompting calls for stronger action, while the bulk‑chemical sector sees many plant closures. The fight over citric acid illustrates a broader struggle between Europe’s industrial base and China’s overcapacity strategy.