The Australian Government has announced a $20 million investment to expand onshore manufacturing of intravenous (IV) fluids, a move aimed at strengthening the country’s supply of a critical medical resource.
The funding will support an expansion at Baxter Healthcare’s Western Sydney facility, which is Australia’s only onshore producer of IV fluids.
Baxter Healthcare will match the investment, bringing the total expansion funding to $40 million, the government said in a news release.
The investment is expected to increase local production by at least 20 million units annually, ensuring that from 2027, 80 million IV fluid units will be manufactured each year.
The move comes in response to supply shortages that began affecting Australia in early 2023, with the Therapeutic Goods Administration warning that global disruptions are likely to persist into 2025.
Minister for Health and Aged Care Mark Butler emphasised the importance of local manufacturing to national healthcare security.
“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 said.
According to the government, IV fluids are essential for hospital care, including surgical procedures and other medical treatments.
The government has been working with local producers and suppliers to secure 22 million IV fluid bags and has established a cross-jurisdictional Response Group, which includes state and territory representatives, private hospital stakeholders, and the Australian Medical Association.
“This is an extraordinary investment in IV fluid production,” Butler added. “Our investment will now cover IV demand for Australia and we will no longer be hostage to overseas supply.”
The initiative is part of a broader strategy to enhance Australia’s medical supply resilience. Other measures include a clinical review of IV fluid use to optimise resource allocation and the establishment of a supplier panel to mitigate potential future shortages.
“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,” Butler said.
“It means more jobs, more bags of IV fluid, and less dependence on overseas production.”
