Europe's reliance on China for antibiotics is increasing, with its sole penicillin factory at risk
The only remaining penicillin factory in Europe—located in the Austrian town of Kundl and owned by the pharmaceutical company Sandoz—is at risk of shutting down due to high production costs (particularly energy costs) and competition from China, which has flooded the market with cheap medicines, reports the publication ntv, as cited by DW.
In March, representatives of the Austrian manufacturing plant filed a complaint in Brussels, alleging that amoxicillin from China—an antibiotic in the penicillin group—is being sold in Europe at prices below production costs.
Furthermore, Sandoz has criticized European governments for frequently prioritizing the lowest prices when procuring medicines, rather than focusing on diversifying supply chains. According to the company, this approach risks increasing Europe’s dependence on China.
"The supply of antibiotics could easily become a tool for economic coercion or hybrid warfare, especially during periods of diplomatic tension," warn representatives from Sandoz.
Europe’s vulnerability regarding its antibiotic supply became apparent in 2022, when, amid a surge in respiratory infections, stocks of amoxicillin produced at the Kundl plant were exhausted.
After this crisis, the European Commission approved an allocation of 28.3 million euros to expand the facility—an investment that increased production capacity by 20%. The plant currently employs approximately 2,000 people.
Eurostat data indicates that China’s share of penicillin and penicillin-derivative imports into the European Union rose from 44% in 2019 to 86% in 2025.
According to information provided by Sandoz, up to 90% of the antibiotics used globally are currently produced outside of Europe, primarily in China and India. In India, some production also depends on chemical raw materials sourced from China.
The risk of the Kundl plant closing brings back to the forefront the issue of Europe’s dependence on external suppliers for essential medicines, as well as the vulnerability of supply chains in the event of economic or geopolitical crises.
