Baxter Healthcare, an American multinational company, is set to significantly increase its IV fluid production in Australia, addressing a crucial need in the healthcare sector. Currently, Baxter produces approximately 75% of the IV fluids used in Australia. By expanding its Western Sydney facility, the company plans to increase production from 60 million units per year to 80 million units by 2027. This expansion comes as a strategic response to the ongoing global shortage of IV fluids, which began in 2023 and is expected to persist through 2025.
The federal government has pledged $20 million towards the expansion of Baxter's facility, a move that Baxter will match dollar-for-dollar. This investment aims to bolster Australia's supply chain, making it less susceptible to external disruptions. The increased production capacity is crucial, as the current shortage has led to extended hospital stays for patients due to rationed fluid supplies. Doctors have expressed frustration over having to "gatekeep" the limited IV fluids.
"It will ensure we have a future made in Australia with onshore production to shield the country from global supply shocks that we have seen recently and through COVID," said Mark Butler.
The global shortages are attributed to higher-than-expected demand and various manufacturing constraints. In response, the federal government has convened an urgent response group comprising states, territories, and health stakeholders to address the crisis. Additionally, the government has secured 22 million bags of IV fluid to help mitigate the shortage's impact.
The expansion of Baxter's facility promises not only to enhance local production but also to create more jobs within the region. This development aligns with the government's broader strategy to ensure that critical medicines and medical supplies are manufactured domestically.
"This is an extraordinary investment in IV fluid production," Butler stated. "It means more jobs, more bags of IV fluid, and less dependence on overseas production."
"The Albanese Labor government is building Australia's future by ensuring that critical medicines and medical supplies are manufactured here in Australia, by Australians," Butler added.
