Downer EDI and BAE Systems the big winners from Hunter defence industry contracts

Downer EDI has been awarded a $164.9 million federal government contract to deliver major airfield upgrade works at Williamtown RAAF Base and Newcastle Airport.

The project is needed for the RAAF's newly acquired F-35A Lightning II fighters. It will also allow Newcastle Airport to accommodate international aircraft.

It is estimated the project will support about 300 jobs with an average of 130 people working on the project each day.

The Liberal candidate for Paterson, Brooke Vitnell, said Wednesday's airfield funding announcement was a "further step in Newcastle Airport reaching its untapped potential".

"The Morrison Government's investment in the runway upgrade will open the Hunter up to the world, create new opportunities for our region and bring thousands of new local jobs, turbocharging our recovery," she said.

"I particularly welcome the increase in jobs in construction of this important asset for our region right here in Paterson."

"Jobs now and jobs in the future are important for continued economic security. I want jobs for our kids and our grandkids."

An $80 million contract was also announced on Wednesday for the delivery of maintenance and supply-chain support for the fleet of F-35 aircraft at the Williamtown and Tindal RAAF bases.

The contract will result in the employment of 46 BAE Systems Australia staff in the Hunter who will provide on-the-ground support to the RAAF.

"We are delighted to build on our contribution to the global F-35 program with this additional support for the RAAF. We will be leveraging our years of experience in fast jet sustainment working side by side with the RAAF to deliver aircraft availability and capability requirements," BAE Systems Australia managing director, defence delivery, Andrew Gresham, said.

A further $60 million has been allocated to assist Australian companies to develop new and improved capabilities to strengthen their chances of securing contracts in the global F-35 program.

Minister Price said Australia's participation in the global F-35 program continued to deliver significant benefits to the Hunter region and the broader national economy.

"This contract with BAE will establish sovereign maintenance and supply-chain support to the Royal Australian Air Force F-35A fleet located at RAAF Bases Williamtown in the Hunter region, and Tindal in the Northern Territory," she said.

The contract with Downer EDI will also deliver a major boost to the Hunter and state economies.

Ms Price said the government was committed to maximising the opportunities for both local and Indigenous businesses.

"RAAF Base Williamtown is the RAAF's main airbase for fighter pilot training and supports a large defence workforce," she said.

"The project will maintain and improve critical airfield infrastructure to ensure RAAF Williamtown continues to support the projection of Australia's air power and also enable movements of larger civilian aircraft for Newcastle Airport.

"This shows yet again that the Morrison government is supporting Australian jobs and backing our defence industry to deliver the capability our men and women in uniform need to keep Australians safe."

The Liberal Patron Senator for the Hunter Region, Hollie Hughes, said: "I warmly welcome this important investment and the jobs it will subsequently create. This is a great project that will deliver increased airfield capacity for larger civilian aircraft, supporting increased international travel and regional tourism.

"It will also benefit for our local economy with an improved accessibility to international freight for exporting regional produce."

Prime Minister Scott Morrison committed $66 million to the runway upgrade project in May.

The existing runway will be deepened and widened by about 7 metres on each side to allow wide-bodied aircraft such as the Boeing 787 and Airbus A330 to access the airport.

It is expected to create 4500 jobs and generate an estimated $12.7 billion in economic benefits through international airfreight, industrial expansion and stimulation of the visitor economy over 20 years.

In addition to twice daily international passenger flights, the upgrade will also unlock potentially billions of dollars of export opportunities.

Downer EDI will target local businesses to deliver at least 75 per cent of the total contract value. It has also committed to achieving at least 4.5 per cent Indigenous employment participation in the project.

Construction is due to start in early 2022 and is expected to be completed in late 2023.

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