Australia will build the southern hemisphere's largest flu vaccine manufacturing plant in a bid to shore up its response to future pandemics.
The federal government has struck a $1 billion, 12-year deal with CSL subsidiary Seqirus for long-term access to influenza and fever vaccines, as well as life-saving antivenoms.
Under the new agreement, Seqirus will invest $800 million to develop a hi-tech vaccine manufacturing facility near Melbourne airport to replace its more than 60-year-old Parkville site.
Work will start next year - creating 520 construction jobs - with the site expected to be operating by mid-2026.
Prime Minister Scott Morrison will on Monday visit CSL's Broadmeadows plant in his first trip to Melbourne since February.
"One of the lessons that many countries have learnt including Australia is we need to continue to invest in supply chain resilience," he told 3AW radio.
He said having upgraded vaccine manufacturing capabilities would be crucial in the event of another pandemic.
"This is for the future but it also is creating economic opportunities right now and security around our supply chains in a critical medical area," Mr Morrison said.
The existing deal with Seqirus was due to expire in 2024/25, potentially putting Australia at risk of needing to source critical medical products from overseas.
The new agreement runs until 2036.
CSL began making coronavirus vaccine candidates in Melbourne last week.
Seqirus is the only company that makes influenza and Q fever vaccines in Australia, while no other firm in the world produces life-saving antivenoms against 11 poisonous Australian snakes, marine creatures and spiders.
Health Minister Greg Hunt said the new facility would guarantee Australia's security against pandemic influenza for the next two decades.
"This is a major milestone, ensuring that Australia can mass-produce vaccines against future flu pandemics," he said.
