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Sandoz penicillin production in Austria

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2026-10-24 16:53 UTC → 2026-10-27 07:27 UTC · added ~~removed~~

The Sandoz penicillin manufacturing facility in Kundl, Austria, which is the last fully integrated plant in Europe capable of producing penicillin from raw materials to the final product, is facing an existential threat from low-cost Chinese imports and high energy costs. While cheaper antibiotics from China benefit public healthcare budgets, they jeopardize European pharmaceutical self-sufficiency. Data from Eurostat shows that China’s share of EU imports for penicillins and their derivatives increased from 44% in 2019 to 86% in 2025. This dependency is further exacerbated by high industrial electricity prices in the EU, which were approximately 50% higher than in China in 2025. Following a €200-million expansion that utilized €50 million in public funds, Sandoz has requested that the European Commission initiate an anti-dumping investigation. The company alleges that Chinese manufacturers sell amoxicillin ingredients at prices below cost, supported by state subsidies. Site manager Stephanie Jedner warned that if the plant closes, Europe would become “completely dependent” on China for this essential class of antibiotics. Sandoz CEO Richard Saynor has further escalated these warnings, describing Europe’s heavy reliance on Chinese antibiotic supplies as an ‘Achilles heel’ for public health and defense. Speaking to UK lawmakers, Saynor cautioned that such dependence could enable supply restrictions to be utilized as a tool for ‘economic coercion or hybrid warfare’ during periods of diplomatic tension.

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