The investment will see the Broadmeadows plant, on the northern outskirts of Melbourne, producing the protein albumin from blood collected from CSL's American collection centres for the first time. Initial separation of blood into its plasma components happens at the company's Kankakee/Illinois factory before it is sent to global plants to be prepared for export.

Mr Perreault told Fairfax Media that the decision cemented Broadmeadow's place in the company's global network and "enhances the strength of the supply."

At peak production the investment will lead to annual albumin exports worth $US600 million ($684 million) at Wednesday's prices. In the 2014 fiscal year, CSL's albumin sales hit $US694 million and accounted for 13 per cent of its $US5.3billion in sales revenue.

The protein is used in emergency surgery to restore lost blood, as well as in the treatment of burns victims.

CSL is experiencing significant demand in China. An unfortunate consequence of the country's growing population, and its status as the Western world's factory of choice, is that China is experiencing a rise in traffic and industrial accidents, which drives demand for albumin.

CSL's sales of the protein rose 16 per cent in constant currency terms in the 2014 financial year - its third consecutive year of double-digit growth.

"We think that will continue," Mr Perreault said, but added it was not just a 'China story'. "It's a global story... China and Asia is a driver of growth but we still need to supply the other countries that are growing."

The Victorian government made an undisclosed contribution to ensure the investment went ahead.

Broadmeadows was chosen over CSL's other plants in the United States, Germany and Switzerland. Asked if the expansion would have gone ahead without government assistance, Mr Perreault said: "The project would have gone ahead, [but] I'm not sure if it would have gone ahead here."

Victorian Premier Denis Napthine declined to disclose the nature of the financial support. "There is a package of assistance and I'm not going into those details for commercial reasons," he told journalists at the plant on Wednesday.

Mr Perreault said part of the package was dependent on meeting job creation and construction milestones. "In order to see any of that money, we have to deliver," he said.

The $35 billion biotechnology giant will kick off a period of construction, which will create 200 jobs, within weeks. The first stage will be finished in about four years. Once it is up and running, 190 highly skilled manufacturing workers will be required.

The looming exit of car makers and the closure of Alcoa's Point Henry aluminium have wiped out a chunk of manufacturing jobs in Victoria.

Mr Perreault said it was likely unemployed manufacturing workers would need to upskill to work at CSL.

In a recent submission to the Innovation Inquiry, CSL warned that Australia was not an attractive location for "entrepreneurial manufacturing" or commercialising intellectual property because of high corporate tax rates, declining skills, high labour costs and complex government interactions.

The company called for subsidies to ensure already established operations remained competitive, which they got in Wednesday's announcement.

CSL has also called for tax breaks to encourage local manufacturing of home-grown intellectual property.

The announcement comes one day after Dr Napthine announced - ahead of the state election in November - that the Coalition wanted to create 200,000 jobs over the next five years. The pitch was criticised as lacking in detail, and recycling already announced policies.

CSL also received an undisclosed government handout to help fund a $257 million expansion at Broadmeadows, which was completed in May.