Defence Industry Minister Pat Conroy says Australia's missile, aerospace and submarine ambitions present "great opportunities" for job creation in the Hunter.
The Shortland MP has been heavily involved in two major defence strategies announced in the past fortnight, to increase the Navy's combat fleet and to grow the nation's defence manufacturing industry.
Mr Conroy said in an interview with the Newcastle Herald on Friday that both strategies offered opportunities for the Hunter.
"The Williamtown defence precinct will be in a good position, and I know there are some companies that are having a think about it, but nothing definite yet," he said.
"Even if we don't get the final assembly plants in the Hunter, there will be parts we'll be very competitive for for missiles and submarine construction."
Global weapons manufacturer Lockheed Martin will base part of the nation's new AIR6500 air missile defence system at Williamtown, employing about 60 people in the Hunter.
Cardiff engineering firm Nupress is manufacturing components for missiles for the Navy's upgraded Hobart class of air warfare destroyers.
Tomago-based BlueScope Distribution has a contract with BAE Systems Australia to supply metals for manufactured parts and electrical transit frames for the planned six new Hunter class frigates.
Mr Conroy said the Defence Industry Development Strategy was designed to boost the nation's self-reliance and give manufacturers investment certainty over decades.
"One of the things we're trying to do is speed up contracting and acquisition cycles, and we're starting with AIR6500, so that's going to be a test case for faster contracting cycles, so that'll obviously flow through to the Hunter," he said.
"We've got companies that I think will be competitive ... to establish an Australian missile manufacturing industry, companies around Williamtown, but also people around the Cardiff industrial estate like Nupress."
Tomago-based company Varley, one of the oldest engineering firms in Australia, is involved in a missile manufacturing partnership with Israeli government-owned corporation Rafael Advanced Defence Systems.
The companies have formed a joint venture called Varley Rafael Australia to make SPIKE LR2 long-range anti-tank guided missiles.
Mr Conroy said Varley was not exporting weapons to Israel, which is involved in a controversial conflict with Hamas in Gaza.
"We haven't exported a single weapon to Israel for the last five years. Full stop, end of story," he said.
"What Varley's doing with Rafael is for Australian combat vehicles. It's got nothing to do with Israel.
"It's purely for the Boxer combat vehicle that Rheinmetall is making for us in Brisbane."
Shipyards in South Australia and Western Australia will work on the Navy's new and upgraded warships, but Mr Conroy said the Hunter would help "grow a supply chain that can sustain them".
"It's in our interest to have east coast industrial centres like the Hunter supporting that a lot because of the quite narrow workforces in Perth and Adelaide," he said.
"We should use our big industrial centres where we can."
The government says it will spend an extra $1.7 billion over the next four years and $11.1 billion over the next decade to expand the Navy fleet and Australia's shipbuilding industry.
"Last year we spent $20 billion on the Australian defence industry for acquiring and sustaining our platforms, and over 100,000 jobs depend on it, and every year we're spending more on that," Mr Conroy said.
"So I think there's great opportunities for the Hunter with both established companies and other companies that are interested in getting into the defence business."
