Baxter, a global leader in medical technology, has provided an update on the impact of Hurricane Helene, which brought unprecedented rainfall and severe flooding to Western North Carolina, affecting its North Cove facility in Marion, N.C. Due to the flooding, the North Cove site is currently closed for production. Baxter is working closely with local, state, and federal officials to assess the damage and develop a plan to resume operations as quickly as possible, aiming to minimize supply disruptions for patients.
“Our hearts go out to all those impacted by Hurricane Helene,” said José (Joe) E. Almeida, Baxter’s chair, president, and CEO. “The safety of our employees, their families, and the communities we serve is our top priority. We are committed to restoring production swiftly to ensure patients and healthcare providers have the products they need.” Almeida added that remediation efforts are already underway, with no resources being spared to bring the plant back online.
In preparation for the storm, Baxter activated its hurricane response plan, which included evacuating staff and relocating products to secure areas. Despite these measures, the site was flooded after a levee breach, and access to the facility was hindered by damaged bridges.
Baxter is actively communicating with customers to minimize disruptions, including managing inventory and implementing a protective allocation process to ensure the continued and equitable distribution of products. The company is also utilizing its global manufacturing network to mitigate supply issues while working to restore operations at the North Cove site.
In support of the local community and relief efforts, the Baxter International Foundation has committed $1.5 million in donations to aid recovery. Additional funds have been allocated to the Employee Disaster Relief Fund, and employee donations are being matched at a rate of $2 for every $1 donated.
Baxter is coordinating closely with federal agencies such as the FDA, FEMA, DHS, and others to facilitate the recovery process. The company plans to provide further updates, including an estimate on the timing for resuming production, as more information becomes available.
While Baxter is expediting efforts to restore operations, the disruption is expected to impact its financial performance. A more detailed assessment will be provided in its third-quarter earnings report once the full extent of the damage is known.
