Baxter partners with Labor government in expanding sovereign supply of IV fluids

The Federal Government has announced a $20 million investment aimed at expanding Baxter Healthcare’s onshore manufacturing capacity for intravenous (IV) fluids. These fluids are critical for a range of medical applications, including surgical operations and hospital care.

The most recent safety notice issued by NSW Health in 2025 highlights ongoing disruptions to the IV fluid supply that began in 2023. The update reveals that “State level audits will no longer be undertaken,” but urges “facilities [to] regularly audit IV fluid use and stock on hand locally to assist the IVFS group with oversight.” The OneLink Warehouse (OLW) will continue to centrally manage IV fluid supplies until further notice.

Federal Health Minister Mark Butler highlighted the importance of the investment during his visit to Baxter’s Australian headquarters in Old Toongabbie this morning.

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

Baxter Healthcare will also contribute an additional $20 million of its own, increasing local IV fluid production by at least 20 million units annually. By 2027, this investment will result in an impressive 80 million units produced each year, significantly strengthening Australia’s sovereign capability to meet its medical supply needs.

Minister Butler also pointed to the long-standing presence of Baxter’s manufacturing operations in Western Sydney, saying, “Baxter Healthcare’s facility has been an important part of manufacturing in Western Sydney for 50 years, and this investment will… means more jobs, more bags of IV fluid, and less dependence on overseas production.”

“This sovereign manufacturing capacity will stand Australia in good stead in the event of global health shocks, like the COVID-19 pandemic,” said Brett Heffernan, CEO of the Australian Private Hospitals Association (APHA). “During the pandemic, private hospitals across Australia stepped up to help public hospitals by taking patients amidst the influx of COVID cases.

“The global shortage of IV fluids, however, was a critical issue for all hospitals as global supply dried up. Baxter Healthcare rose to the occasion, ensuring that supply met the urgent needs of hospitals across the country. However, the shortage highlighted the need for greater local manufacturing and security in our supply chains.”

Brendan Cummins, Baxter’s Vice President and General Manager for Australia and New Zealand, said “As Australia’s only onshore manufacturer of Australian-made IV fluids, Baxter is committed to building an even stronger and more resilient supply of IV fluids for Australia, while also supporting local jobs.

“Today’s announcement by the Australian Government and Baxter to invest $40 million into the expansion of our Australian IV manufacturing plant is the single largest investment in this site since opening its doors over 50 years ago.”

Cummins praised the advanced capabilities of Baxter’s Old Toongabbie plant, stating, “Our manufacturing facility is cutting-edge, thanks to the local expertise of our employees…who continuously step up to support local caregivers and patients right across Australia.”

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