Lockheed Martin breaks ground on $85.9m Newcastle precinct

The precinct will also deliver critical sustainment support for Australia’s F-35 fleet as well as underpinning regional sustainment arrangements for other F-35 operators across the Indo-Pacific.

Australian-owned contractor Built will begin construction immediately, with the precinct slated to become operational by 2028.

Once complete, the purpose-built facilities will feature dedicated zones for hardware assembly and installation, integration and validation work, end-to-end testing of system of systems, sustainment of sovereign software, and advanced training for IAMD capability, including Australia’s Joint Air Battle Management System to be delivered under the multibillion-dollar AIR 6500 program.

Lockheed Martin Australia and New Zealand chief executive Jeremy King said the investment reflects the company’s responsibilities as Defence’s strategic partner on AIR 6500 and the F-35 program.

“As Defence’s strategic partner on AIR 6500 and F-35, we recognise our duty to uplift Australia’s defence industry from the ground up, turning skilled talent into critical capability,” King said.

The precinct will also provide program management support to Lockheed Martin Australia’s F-35 sustainment team, the company’s largest international F-35 sustainment operation, and will be a critical enabler for Australia to host a dedicated canopy-repair capability.

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“This investment demonstrates our enduring commitment to Australia’s military readiness and sovereignty. By building a secure, world-class Air Power Precinct we enhance coalition interoperability and safeguard our nation’s way of life through self-reliance and advanced technology,” King said.

The state-of-the-art diagnostic, repair and test infrastructure is expected to cut reliance on overseas assistance, strengthen the Royal Australian Air Force’s operational resilience, and reinforce F-35 operations both regionally and across the global supply chain.

The project is expected to generate more than 200 jobs during construction and create over 60 new aerospace roles, with more than 230 ongoing highly skilled engineering and technical positions to be sustained once the precinct is fully operational.

“For the Hunter region, the Lockheed Martin Australia precinct generates important economic benefits. It creates opportunity for jobs growth, small-to-medium enterprise innovation, reinforces supply chain resilience, and positions the Hunter defence community as a strategic hub in the Indo-Pacific F-35 and IAMD ecosystem,” King said.

The precinct will also open the door for local suppliers and small and medium-sized enterprises to plug into the broader defence supply chain, further cementing the Hunter’s growing status as a defence industry hub.