A $20 million Federal Government investment is set to expand Australia’s largest and only onshore manufacturer of IV fluid, Baxter Healthcare.
The investment will go toward Baxter’s production facility in Western Sydney to help secure supply and shore up Australia’s sovereign capability of the critical hospital medicine.
“Baxter Healthcare’s facility has been an important part of manufacturing in Western Sydney for 50 years, and this investment will help it expand to produce another 20 million IV fluid bags every year,” said Australian minister for Health and Aged Care, Mark Butler.
“It means more jobs, more bags of IV fluid, and less dependence on overseas production.”
Baxter Healthcare will match the investment with $20 million of its own, expanding local IV fluid production by at least 20 million units.
This investment will ensure from 2027, 80 million units are produced each year.
Australia began to see a shortage of IV fluids in early 2023, with the Therapeutic Goods Administration predicting that global supply issues are likely to continue during 2025.
In response to the shortage, the Federal Government worked with local producers and suppliers to secure supply of over 22 million IV fluid bags and brought together a cross-jurisdictional Response Group that includes all states and territories, private hospital representatives and the primary care sector through the Australian Medical Association.
This $20 million investment in Australia’s sovereign capability in IV fluid production is part of a broader program of work to secure supply of this critical hospital medicine, which includes: a clinical review of their use in Australia to ensure the best use of IV fluids, and establishing a panel of suppliers to help reduce any future shortfalls.