Cheap Chinese Antibiotics Threaten Europe’s Last Major Penicillin Plant
Europe’s last major fully integrated penicillin production facility, operated by Sandoz in Kundl, Austria, is facing an uncertain future as cheaper Chinese antibiotics put pressure on prices. China’s share of European Union imports of penicillins and their derivatives rose from 44% in 2019 to 86% in 2025, according to Eurostat data. Sandoz has asked the European Commission to investigate alleged unfair pricing, warning that the plant may struggle to remain commercially viable without additional support.
The facility employs more than 2,000 people and produces penicillin, including key active pharmaceutical ingredients used in essential antibiotics. European policymakers are concerned that dependence on Chinese supplies could leave the region vulnerable to shortages during pandemics, conflicts or trade disputes. The COVID-19 pandemic and the 2022 shortage of amoxicillin highlighted the risks of relying heavily on overseas pharmaceutical manufacturing. High European energy and labour costs have also made local production less competitive.
Sandoz is seeking possible anti-dumping measures against Chinese imports, arguing that low prices and subsidies threaten Europe’s ability to manufacture essential medicines independently. The European Commission is expected to consider an investigation, although no timeline has been confirmed. China maintains that its industrial support complies with World Trade Organization rules and opposes protectionist measures. The debate highlights the challenge of balancing affordable medicines for patients with the need to maintain a reliable European antibiotic supply chain.
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