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[BUSINESS] · Austria, China · 12 sources

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Sandoz warns of European penicillin supply risks

The Sandoz penicillin manufacturing plant in Kundl, Austria, faces an uncertain future due to high energy costs and competition from Chinese imports. As Europe’s only facility with a complete production cycle—from raw materials to finished active pharmaceutical ingredients—its potential closure could leave the continent entirely dependent on China for this essential antibiotic.

Sandoz has requested an anti-dumping investigation from the European Commission, alleging that Chinese manufacturers sell amoxicillin ingredients at prices below cost, supported by state subsidies. This competition is compounded by high industrial electricity prices in the EU, which were approximately 50% higher than in China in 2025.

Data from Eurostat indicates a growing dependency: China’s share of EU penicillin and derivative imports rose from 44% in 2019 to 86% in 2025. While the European Commission previously provided 50 million euros in public funds to expand the Kundl facility, the site remains economically vulnerable to lower-cost production elsewhere.

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China · European Commission · Kundl · Sandoz · Stephanie Jedner

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