European thermal paper producers file anti-subsidy complaint to EU Commission against unfair Chinese imports

PRESS RELEASE

Brussels, 23 September, 2025

European thermal paper producers have filed a complaint to the European Commission urging action against the influx of highly subsidised imports of lightweight thermal paper (LWTP) from China. The European Thermal Paper Association (ETPA) has requested an urgent investigation to safeguard European industry from unfair competition by Chinese producers.

Jujo Thermal, a thermal paper manufacturer, is a member of the European Thermal Paper Association (ETPA) and therefore supports the complaint filed with the European Commission. The company is based in Kauttua, Finland, where it continues the region’s strong tradition of paper manufacturing with a focus on high-quality specialty papers. Jujo Thermal employs approximately 180 professionals directly in Finland, with a significantly broader employment impact along the value chain.

Thermal paper is used in the production of receipts used in retail outlets and restaurants, credit card slips and self-adhesive labels for logistics. This speciality paper is therefore indespensable in various sectors, including retail, hospitality, transport, logistics and pharmaceuticals.

Europe’s thermal paper industry employs 4,600 people in Germany, Finland, Spain and France, in regions where there are few other employment opportunities. European thermal paper manufacturers also uphold stringent environmental and social standards. (See ETPA website for more details). However, the future of this homegrown industry is jeopardised by the ongoing influx of heavily subsidised lightweight thermal paper from China.

Chinese LWTP imports have surged by over 500% in volume and 538% in market share from 2022 to the first quarter of 2025. Since 2023, the price of these imports has persistently decreased, forcing European producers to reduce their prices.

The complaint documents numerous unfair subsidies provided by the Chinese government, creating an untenable competitive environment for European industry. According to the latest annual reports of the Chinese exporting producers, they collectively received over EUR 93.6 million in direct subsidies in 2024 alone.

Measures creating market distortions include:

• Direct financial support: equity infusions, preferential loans, favourable export insurance rates and extensive grant programmes;
• Tax advantages: preferential income, export and VAT tax regimes;
• Below-market inputs: the provision of raw materials at artificially low costs;
• Research & Development: a "super-deduction policy" for R&D expenses;
• High-tech enterprise benefits: a lower enterprise income tax rate (15% vs. standard 25%), technology transfer tax exemptions, accelerated depreciation of fixed assets and priority access to industrial land.

As a direct result, European producers have been put under increasing pressure necessitating the imposition of countervailing measures to restore the level playing field.

ETPA President, Mr Nic Holmer (General Manager Sales & Marketing, Kanzan Spezialpapiere), commented: “Our European industry welcomes fair competition, but it is patently unfair to compete against the highly subsidised Chinese products now flooding the European market. We call on the European Commission to take swift and decisive action to ensure a truly competitive and sustainable environment for Europe’s thermal paper sector.”

ETPA Vice President, Mr Sebastian Früh, (Director Thermal Paper Division, Koehler Group), commented: “European manufacturers not only meet EU and global environmental standards but continue to innovate to ensure that their products provide quality and value for their customers. But these principles are threatened when producers outside the EU receive unfair competitive advantages through various subsidies. We request the Commission to prioritise this complaint, which is a test case for the EU’s commitment to defending its strategic sectors.”

About ETPA

The European Thermal Paper Association (ETPA) represents a dynamic group of companies that are integral to Europe's rich paper-making tradition. ETPA members are at the forefront of innovation and sustainability in the thermal paper industry, contributing significantly to the economic development of their respective regions. Collectively, they employ over 4,500 manual workers and professionals across Europe, driving growth and strengthening the socio-economic fabric of communities.

For further information contact:

 Stefan Kauer, ETPA Secretariat: mail@etpassociation.org

Jens Remmer, Sales Director, Jujo Thermal: jens.remmer@jujothermal.com