Baxter North Cove Plant Currently Closed Due to Hurricane Helene
The company—whose foundation has committed $1.5 million for in donations for recovery—is currently working on a plan that will help limit supply disruption.
Baxter International Inc., a company specializing in the medtech space, recently provided an update concerning the damaged caused by Hurricane Helene, including flooding to the Western North Carolina area.1 The company houses its North Cove plant in Marion, NC.
This flooding to the North Cove facility caused it to shut down for production, but the company has noted that it is working tirelessly—with the help of colleagues, partners on the ground, local, state, and federal officials—to not only evaluate the magnitude of the damage, but also develop a plan to revitalize the plant to limit supply disruption; this plant specifically offers intravenous and peritoneal dialysis solutions for the treatment of kidney failure. Despite these efforts to keep processes moving along, Baxter also added that the storm will “negatively impact” its financial results.
The Baxter International Foundation has pledged $1.5 million in donations to go toward humanitarian aid partners to help tackle recovery efforts, which include allotting extra funds to its Employee Disaster Relief Fund, and is matching employee donations $2:$1 to relief efforts.
The federal regulatory agencies involved in these efforts include the HHS Department of Health and Human Services (HHS), FDA, Administration for Strategic Preparedness & Response (ASPR), Federal Emergency Management Agency (FEMA), Department of Homeland Security (DHS), and local and state authorities, its partners on the ground, and the dedication and resilience of Baxter colleagues. Baxter will continue to share updates as information becomes available.
“Our hearts and thoughts are with all those affected by Hurricane Helene,” said José (Joe) E. Almeida, chair, president, and CEO, Baxter. “The safety of our employees, their families, and the communities in which we operate remains our utmost concern, and we are committed to helping ensure reliable supply of products to patients. Remediation efforts are already underway, and we will spare no resource—human or financial—to resume production and help ensure patients and providers have the products they need.”
Luckily, Baxter enacted a hurricane preparedness plan, which consisted of employee evacuation plans, along with managing to relocate products to either a storage space or higher ground if possible. However, the combination of the rain and storm surge caused a levee breach, resulting in water entering the facility and causing damage to the bridges that lead to the site.
The company is implementing various efforts to limit supply chain disruptions, such as continuing to manage inventory and employing a “protective allocation process” (organized by product line) to tackle supply and distribution challenges.
Reference
1. Baxter Provides Update on North Cove, NC, Facility and Hurricane Helene Relief Plans for Community. Baxter. September 29, 2024. Accessed October 2, 2024. https://www.baxter.com/baxter-newsroom/baxter-provides-update-north-cove-nc-facility-and-hurricane-helene-relief-plans
