A $160 million deep maintenance and modification facility for high-tech military aircraft will be constructed in South Australia.
The state's Liberal government on Saturday announced it would fund the purpose-built Boeing 737 facility, to be constructed next to the Edinburgh RAAF base about 30 kilometres north of Adelaide.
It is expected to be fully operational in 2025, with construction to begin in mid-2023.
Simon Birmingham, the federal finance minister and South Australian senator, said it will allow deep maintenance of 14 P-8A Poseidon aircraft to occur in Australia rather than the United States.
The facility will also service six RAAF E-7A Wedgetail early warning and control aircraft, which will be relocated from Queensland.
Mr Birmingham said 200 jobs will be created during construction and more than 120 long-term skilled employees will be needed to provide ongoing maintenance work.
Air Commodore Ken Millar said Boeing 737 aircraft would be inducted for maintenance in the middle of the year, with work to be undertaken in a 1970s hangar.
"Unfortunately, the aircraft doesn't fit in those hangars, and the tail is going to hang out the back and we have to enclose that," he told reporters.
"There's also not enough of them, so we do need state-of-the art facilities long term."
Mr Birmingham said the facility was another vote of confidence in South Australia's booming defence industry.
