They by law cannot use certain primers for environmental concerns.
In their position, I would advise the lawmakers that my product would be substandard, if that law were to be enacted/ enforced.
Therefore, I have a choice....hold the lawmakers accountable for losses , or consider it to be constructive destruction of my business....sue for disruption and loss, relocate to a more benign State.
I'm sure a good publicity campaign would make the local electorate aware of job losses and potential damages, because some ill-thought-out local legislation was forcing out a major employer!
That apart, If they had the will, they could paint the components elsewhere , then ship them back in for finishing/assembly.