CSL opens near $1bn new plasma factory in Melbourne to spearhead its lifesaving therapies

CSL’s major new factory will fuel a nine-fold increase in its plasma processing capacity in Australia.

CSL has invested $2bn at its Broadmeadows, Melbourne factory in the past 10 years. Picture: Tim Carrafa

CSL chief executive Paul Perreault has declared “we’re here to support Australia” after he unveiled a new $1bn factory in the suburb known as Melbourne’s manufacturing rust belt, Broadmeadows.

Mr Perreault said the factory would turbocharge production of CSL’s life-saving therapies, processing up to 9.2 million plasma equivalent litres a year – a nine-fold increase on CSL’s current capacity – and export to more than 100 countries.

“With the construction of this new facility in Victoria, CSL will continue to meet the increasing demand for our plasma biotherapies, not only in Australia but also for our patients worldwide who rely on us every day,” Mr Perreault said.

The factory will separate the various components of human blood plasma in a process known as fractionation to create therapies to treat various rare diseases, immunodeficiencies, neurological disorders, shock and burns.

The site accounts for almost half of CSL’s $2bn-plus Australian capital works program, which includes building a next-generation influenza vaccine factory – using cell-based technology – at Tullamarine, 20 minutes from Broadmeadows, and a new headquarters and biotech precinct in Melbourne’s CBD.

Mr Perreault expects Broadmeadows to double its contribution to CSL’s overall revenue to 20 per cent by 2030. Last year, CSL generated $US10.3bn ($15.4bn) in sales.

The launch of the new factory contrasts with a dire warning CSL issued previously about manufacturing in Australia.

The company told a Senate inquiry in 2014 that: “Australia is a relatively unattractive location for entrepreneurial manufacturing or as a base from which to commercialise locally developed intellectual property into global markets.”

CSL chief executive Paul Perreault says the new factory will support advanced manufacturing in Australia. Picture: Aaron Francis

“The observation is a comparative one, based on CSL’s direct experiences and observations as a global corporation,” CSL wrote in its 2014 submission to a Senate inquiry on innovation.

“This is principally a function of Australia’s uncompetitive corporate tax system, but is exacerbated by declining access to some important specialised skills, high overall labour costs, location, terms of trade, resulting in a sustained strong currency, and the complexities of dealing with Australia’s system of government and regulation.”

While Mr Perreault said there was still work to do around skilled migration and the visa system, he said the government was making progress.

“I know the government’s looking at these sorts of things and we’ve been through that in the past, about unintended consequences of making changes to visas.

“We’ve talked about tax rates and different schemes that countries use to attract industry. All I can say is that we’re about taking care of patients and protecting human health.

“We saw the assets here, we’ve got the capabilities here.

“We’re here to support Australia. We’re not leaving Australia, because we don’t have this type of presence in the southern hemisphere.”

Broadmeadows production will serve current demand for plasma therapies, but the company could add more capacity to meet future growth.

“When you’re making a $1bn investment, it’s your hope that you’re not going to have to replace it tomorrow,” Mr Perreault said.

He said the new factory was similar to a fractionation facility that CSL Behring has built simultaneously at Marburg in Germany. He said the two projects would promote “cross-functional and cross-cultural development opportunities for the company’s global employees”.

Broadmeadows will process domestic plasma from Australian, New Zealand, Taiwan, Hong Kong and Malaysian donor plasma, in addition to commercially sourced plasma through CSL Plasma, one of the world’s biggest collectors of human plasma.

“CSL is a key partner of the National Blood Authority in accordance with the National Fractionation Agreement for Australia. This agreement was renewed in 2018,” Mr Perreault said.

“As part of the renewal, CSL committed to supporting Australian patients with their life-saving medications including transitioning their offering to new products in their new facilities.”