Government invests in local IV fluid manufacturing

The federal government has announced it is investing $20 million in an expansion of Australia’s onshore manufacturing capability for IV (intravenous) fluids — a medical supply of critical importance for surgical operations and hospital care, among other medical uses.

The investment will expand Australia’s only onshore manufacturer of IV fluids at the Baxter Healthcare production facility in Western Sydney. Baxter Healthcare will match the investment with $20 million of its own, expanding local IV fluid production by at least 20 million units. The investment will ensure that 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.

“The Albanese government is building Australia’s future by ensuring that critical medicines and medical supplies are manufactured here in Australia, by Australians,” said Minister for Health and Aged Care Mark Butler. “Our investment will now cover IV demand for Australia and we will no longer be hostage to overseas supply.

“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.”

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