Novartis cancels decision to relocated Austria penicillin factory to Asia

Novartis will invest €150m in a fully integrated penicillin plant in Austria, instead of relocating production to Asia. The Austrian government has offered to put up €50 million of the costs in an effort to keep the country's last such factory in the country, according to Economy Minister Margarete Schramboeck. She said the Covid-19 crisis had highlighted the dangers of relying on Asia when it comes to pharmaceuticals, referring to supply chain disruptions caused by the pandemic. The plant in the Tyrolean town of Kundl, which managed by Novartis' Sandoz branch, produces enough penicillin to meet all European demand.