An aerospace contractor with almost 200 employees will set up shop at Newcastle Airport's emerging industrial precinct under plans lodged with Port Stephens Council.
The company that operates the airport on behalf of Newcastle and Port Stephens councils has lodged a development application for the $32 million workshop at the Astra Aerolab industrial estate.
The application says the new building will cater for a "high-technology industry" employing 187 staff in offices and a workshop.
"Industrial processes proposed within the workshop will include production, welding [and] assembly of equipment for defence activities," the application says.
The 2.4-hectare compound will have a security gate, high-voltage electricity supply and room for B-double trucks to enter.
The Newcastle Herald has been told the identity of the Defence Department contractor is being kept under wraps due to an ongoing confidential tender process.
The arrival of a manufacturing operation at Williamtown would help broaden the airport's industrial base beyond developing and maintaining air force equipment.
The proposed building is the third major development planned for the airport's 124-hectare Astra Aerolab precinct.
The airport won planning approval in August for two multi-tenanted buildings designed to accommodate small to medium enterprises, start-ups and education and training facilities.
The approved eight-storey office tower and industrial warehouse have a total development cost of $40 million.
The Herald understands the office and warehouse buildings were designed with specific defence industry companies in mind, but the airport has not disclosed the identity of the potential tenants.
The government announced in December that it would spend $110 million expanding the BAE Systems hangars that maintain Australia's F-35 joint strike fighter fleet at Williamtown.
The $110 million was on top of a $100 million government investment announced in August for a new aircraft coating facility at Williamtown.
Industry sources predicted a "few more" developments at the fledgling Astra Aerolab precinct this year.