Newcastle could be at the epicentre of one of the biggest strategic defence projects in Australia, potentially creating jobs and injecting millions of dollars into the region.
The federal government's $2.7 billion AIR6500 Phase 1 program will bring together the Australian Defence Force's air and missile defence capability through the development of a Joint Air Battle Management System.
The system will become the architecture at the core of the ADF's future Integrated Air and Missile Defence (IAMD) capability.
Its purpose is to connect all platforms and sensors across all warfighting domains into a single interface that can track threats, coordinate a joint response, and direct that response onto the target.
Northrop Grumman Australia is one of two companies bidding for the project. Lockheed Martin is the other company vying for the contract.
Northrop Grumman has confirmed it will host its Support Centre for the program in Newcastle adjacent the Williamtown RAAF Base if it is the successful tenderer.
The company has joined forces with Australian-owned and controlled test and evaluation leader Nova Systems.
Both companies have established operations out of Williamtown and if successful, the project will enable a huge expansion of their footprint in the region.
Northrop Grumman Australia director for strategy and future business Chris Keane said the company was not only working to provide the Australian Defence Force with a strategic advantage, but to grow important technical skills and capability in the region.
"We see Newcastle as an important hub for the design, development and testing of a critical sovereign capability. The opportunity in front of us is to enable the region to play a role in delivering this vital system to the ADF, and in doing so support the nation becoming a leader in the development and application of this defence technology," he said.
The company's Newcastle support centre would host an array of critical activities including project management, systems engineering, and critically the test, evaluation and training, which it is working with Nova Systems to deliver.
"Nova Systems is a pioneer in test and evaluation and now a real leader in their field. We're not looking at a traditional working relationship with them for one or two years, but instead are intent to work together to build sovereign capability for decades.
Nova Systems chief executive Jim McDowell said Nova Systems was looking forward to growing the company's capability in Newcastle to support the AIR6500 defence project.
"Test and evaluation is Nova Systems' bread and butter," said Mr McDowell.
"Nova Systems brings truly sovereign capability to our partnership with Northrop Grumman Australia and together, we believe we are a really strong team.
"Newcastle is known for its strong pedigree of defence industry capability and there is no doubt that AIR6500 will provide additional jobs and a major boost to the local economy.
"Our partnership is a great example of Nova Systems working with a global Defence prime to support the delivery of truly sovereign capability that not only supports our Defence Force personnel but fosters crucial skills required to ultimately help keep Australia safe and secure."
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