The federal government is investing more than $33 million to shore up Australia’s supply chains, including backing Australia’s only local manufacturing site for critical intravenous (IV) medical fluids.
Under Round one of the Supply Chain Resilience Initiative, a key part of the government’s $1.5 billion Modern Manufacturing Strategy, 27 projects will share in funding, with Round two now open for applications.
Companies funded in Round one include Baxter Healthcare, which will receive up to $2 million to support the manufacture of more than 50 million units of life-saving IV medicines used in the ICU, emergency rooms, operating theatres and oncology wards around the country.
Strike Energy will also receive up to $2 million to establish a large-scale facility using natural gas and green hydrogen to locally produce urea for agricultural fertiliser, replacing imports and securing local jobs in WA.
These grants will improve Australia’s access to critical products – medicines and agricultural production chemicals – including in times of crisis.
“The COVID-19 pandemic has showed us the importance of resilient supply chains and manufacturing capability within Australia – especially for critical products,” minister for Industry, Energy and Emissions Reduction Angus Taylor said.
“Whether it be to ensure we have life-saving medicines, or that our farmers have the agricultural production chemicals they need to keep producing food for Australians, we want to secure our capabilities to make what we need.”
According to Taylor, this is why the government is investing in projects to support manufacturing of these critical products and in the areas of semi-conductors and water treatment chemicals under Round two.
“These projects, with the government’s support, will grow Australian manufacturing, build capability and support and create crucial jobs in Australia,” he said.
Successful companies under Round one will receive matched grants of between $50,000 and $2 million across medicines and agricultural production chemicals, which were identified as sectors of focus in the Sovereign Manufacturing Capability Plan.
The Round two grants will cover eligible projects in the areas of semi-conductors and water treatment chemicals, identified during a second tranche of analysis. This support builds on existing strong collaboration with the telecommunications sector to ensure resilience to sustain critical operations in that area.
For more details on the successful projects and for Round two guidelines, click here.