Another 150 manufacturing jobs will be created as part of a $103 million high-technology industry centre to be built at the Williamtown Astra Aerolab.
The Newton Parade facility, to be developed by Greater Newcastle Aerotropolis, will make, assemble, test and maintain components and associated software used by the defence and aerospace industries.
"The objectives of the project are to construct and operate a new high-technology industry development, in order to leverage the investment in the Newcastle Airport through the delivery of high-technology industries where they have direct access to airside land," an environmental impact statement for the project says.
The development, which will comprise a three-storey, 12-metre tall building, is among several projects that are being established in the area to service the defence industry.
It is proposed that the facility will operate as a 24-hour, seven-day operation over three shifts.
It is estimated it will create about 170 construction jobs and 150 operational jobs.
Planning documents say the project will promote collaboration between community, private business and the three tiers of government to foster innovation and growth in the aviation sector in Australia.
Opportunities will be created to establish strategic defence partnerships with the University of Newcastle and TAFE through Science Technology Engineering Maths (STEM), and industry innovation programs.
The Astra Aerolab is being developed as a six-stage subdivision.
The works approved under the subdivision include the construction of roads and footpaths, installation of street trees, public domain, landscaping and installation of utilities.
The aerolab is close to Newcastle Airport, a significant gateway into the region and a driver of its economic transformation.
The Australian Government has committed $66 million towards the airport's runway upgrade to an international standard that will allow long-range and wide-bodied aircraft. Funding has also be secured to expand the airport's international terminal.
"The upgrades to the Newcastle Airport together with Australian Defence Force programs attached to the RAAF Base Williamtown will provide a catalyst and strong platform for the development of employment land with a focus on defence and aerospace industries," the environmental impact statement says.
The site is known to be the subject of per- and polyfluoroalkyl substances (PFAS) contamination from the nearby Williamtown RAAF base.
"Based on the results from the publicly available annual interpretive report, groundwater beneath the site is inferred to be contaminated with PFAS above the adopted screening criteria," the environmental impact statement says.
A construction environmental management plan will be prepared to manage the contamination.
The development's environmental impact statement will remain on public exhibition until August 14.
