Defence contractor BAE has lodged plans for a $120 million aircraft painting workshop at Williamtown.
The federal government entered into a partnership last year with BAE Systems Australia to build the workshop to maintain the high-tech paint coating on Australia's fleet of F-35 jet fighters.
A scoping report lodged as part of a state significant development application says the aircraft coating facility will be built beside BAESA's existing aircraft maintenance workshop at Newcastle Airport.
The application estimates the paint workshop will employ 175 workers during almost two years of construction and 29 ongoing BAESA staff.
The F-35's paint is a state-of-the-art element of its radar-evading "stealth" technology.
The paint's make-up is a closely guarded secret inside the US-led multinational Joint Strike Fighter program.
The facility will allow the nation's 72 F-35 aircraft to be recoated in Australia rather than having to fly to the US.
The development application says BAE plans to start work on the workshop building late next year.