Defence splurge on $500m 'key missile defence' contract creating Hunter jobs

Jobs creation is a key selling point in the next phase of the federal government's Joint Air Battle Management System, also known as the project Air 6500, which is key to the Albanese Government's plan to increase defence force spending on "next-generation air missile defence".

It is understood this next phase will involve core command-and-control architecture for integrated air and missile defence, providing greater situational awareness of advanced air and missile threats, and increased interoperability with international partners.

The project is expected to deliver improved network architecture, next-generation deployable air-battle management systems and initial integration with priority platforms, such as major combatant ships and aircraft.

Lockheed Martin Australia currently employs around 30 full time staff in the Newcastle region, and this number is expected to grow to around 60.

The project is expected to include contracts to build a mixed office building with a workshop, collaboration space, training room, and car parking near the RAAF Williamtown airbase, with a construction time of 70 weeks.

The Newcastle Herald understands that once completed, the building will accommodate 150 - 200 people, and that the lease, development and build will see $70-80 million invested in the Williamtown region for the AIR6500 facility.

The build will involve up to an estimated 385 full-time equivalent direct and indirect jobs, one-third on-site over about 15 months.

The Minister for Defence Industry Pat Conroy said the announcement, on Wednesday. April 24, continues the work by the Albanese Government on next-generation air missile defence.

"It is a further demonstration of our unwavering commitment to strengthen national security and provide the Australian Defence Force with the capabilities it needs to make Australians safer," Mr Conroy said.

"This is an investment in our national security but also an investment in a future made in Australia which will support local businesses and create hundreds of jobs, particularly in the Hunter Region, and support many more. It underscores the fact the Albanese Government's plan to grow the economy and create jobs is paying dividends.

"The Albanese Government is actively creating opportunities for Australian industry, through the entire supply chain of small-and-medium enterprises, as we deliver these critical defence capabilities."

Annual funding for defence is forecast to surpass $100 billion in a decade, with more than $50 billion set aside for 'national defence readiness' over the next ten years.