Time critical: Williamtown base gets $110m for F-35 fleet expansion

Australia has been reinforced with new squadrons of F-35 fighter jets, many of which are based in Newcastle, and BAE Systems has been contracted to maintain and service the 72-strong fleet.

But BAE faces "capacity and logistical issues" due to the design of its Willamtown hangars, which were built for the smaller F/A-18 Hornet series. The government-funded development will expand the northern hangar, providing an extra 3500-square-metres of space.

Planning documents convey a sense of urgency, saying the project is "time-critical" and would "directly contribute to the defence of Australia".

"As the world enters an increasingly unpredictable and uncertain future, Australia's priorities in the defence of the nation have shifted accordingly," planning documents state.

"The project directly aligns with the need for preparedness within the Indo-Pacific theatre in the form of providing theatre logistics.

"The project's completion is tied intrinsically with the operational readiness and capability of Defence aircraft."

A BAE spokesperson said the development would add seven new bays for the F-35 aircraft, which were "the world's most advanced fighter jet", taking the overall Williamtown capacity to 13 bays that can service the growing F-35 fleet in the Indo-Pacific.

"This is a major milestone for the aviation industry in the Hunter region," they said.

"The expanded capabilities to support the F-35 fleet will provide hundreds of jobs for people across the Hunter Valley, and nationally, for decades to come."

The $110 million is on top of the $100 million previously announced for Williamtown in the past 12 months for a new aircraft coating facility to apply specialised paint to make the jets invisible to radar, and four new maintenance bays in the south hangar.

Defence Industry Minister and Shortland MP Pat Conroy said the contract extension with BAE more than doubled the federal government's initial investment in the Willamtown F-35 hub.

"Crucially, this contract secures jobs for people across the Hunter and nationally for decades to come," Mr Conroy said.

"It also ensures the Hunter Valley's future as a hub for the sustainment of aircraft from Australia, and potentially from other nations."

The project is expected to provide 40 jobs over the course of demolition and construction, and an additional 108 jobs during operations.

The upgraded Williamtown hub could also be used to sustain aircraft from other nations.

"As a regional hub for the global F-35 enterprise, this infrastructure will provide BAE Systems Australia with the capacity in the future to provide this service to foreign F-35 aircraft," a Defence spokesperson said.

The development will also include a new 1000-square-metre washdown shed and an upgraded apron. Construction is planned to commence in the third quarter of 2023 and will take about 12 months.

Mr Conroy said the investment highlighted the Albanese government's commitment to growing the nation's defence industry.

"This is another example of the Albanese government investing in our sovereign defence industrial base and the F-35 program, which will directly and indirectly support around 750 jobs by 2025," he said.