The federal government will build a new $100 million workshop at Williamtown to maintain the high-tech paint coating on Australia's fleet of F-35 jet fighters.
Minister for Defence Industry Pat Conroy will announce on Tuesday that the government will partner with F-35 maintenance contractor BAE Systems Australia to establish the new coating facility at Newcastle Airport.
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 Williamtown project is expected to create 100 construction jobs and add another 25 staff to BAE's 360-strong workforce at Williamtown.
Mr Conroy said the dedicated stealth coating facility would be the only one of its kind in Australia and could service F-35s from other Indo-Pacific countries involved in the program, "transforming Newcastle into a regional hub".
"This is a vote of confidence in the Hunter region that ensures these world-class aircraft will operate and be sustained from Newcastle Airport for decades to come," the Shortland MP said.
"The Hunter community can be proud to be playing a vital role in sustaining this critical defence capability not only for Australia but also for the region.
"Defence industry in the Hunter and across Australia is already making a significant contribution to the F-35 program, and this will continue to grow in the years ahead."
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 design for the coating facility will be finalised by the end of the year and construction will start in mid-2024.
BAE signed a $100 million services deed with the federal government late last year to expand its F-35 depot at Williamtown from two to six maintenance bays.
