Sandoz Seeks EU Anti-Dumping Probe as Chinese Antibiotics Threaten Austria's Last Integrated Penicillin Plant

Sandoz has asked the European Commission to open an anti-dumping investigation into Chinese penicillin imports, warning that its Kundl, Austria plant — the only facility in Europe producing penicillin from start to finish, including active pharmaceutical ingredients — is not commercially sustainable without tariff protection. China's share of EU penicillin and derivative imports, mostly in bulk API form, has nearly doubled from 44% in 2019 to 86% last year, Eurostat data show. The Kundl site employs more than 2,000 people and completed a €200 million expansion three years ago that included €50 million of public funds after amoxicillin shortages in 2022. Sandoz cites lower Chinese environmental and labor costs, state subsidies and EU electricity prices averaging nearly 50% above China in 2025. The company says it cannot raise prices under European procurement rules favoring lowest-cost suppliers. EU trade experts expect duties to be levied given Brussels' hardening stance on China.