Construction for Defence Facility Breaks Ground at Newcastle Airport

Friday marked a significant step forward for defence and manufacturing capabilities in the Hunter Region with a sod-turning event to commence construction of a new defence manufacturing facility within Newcastle Airport’s growing Astra Aerolab precinct.

Newcastle Airport CEO Dr. Peter Cock and Kongsberg Defence Australia (KDAu) Managing Director John Fry welcomed Minister for Defence Industry and Capability Delivery, The Hon. Pat Conroy MP, Member for Paterson, Meryl Swanson MP and dignitaries from KONGSBERG and from across the region to celebrate.

Construction for the state-of-the-art-facility follows the Australian Government’s recent announcement of a $850 million contribution in partnership with KDAu to manufacture and maintain the KONGSBERG Naval Strike Missile and Joint Strike Missile in Newcastle, strengthening Australia’s sovereign capabilities. KDAu was also named as a strategic partner in the Guided Weapons and Explosive Ordnance (GWEO) Enterprise. The Government's 2024 Integrated Investment Program commits up to $21 billion over the next decade to support the GWEO Enterprise.

Dr. Peter Cock said it was a proud moment for the region to see KDAu turn sod within the airport’s Astra Aerolab precinct and thanked the Australian Government for funding this incredibly important initiative and prioritising the Hunter as a region of significance.

“I’d like to thank KDAu for their confidence in our business and the region,” Dr. Cock said. “Once it is built, the Hunter will be home to only the second facility of its type in the world, joining existing high-tech manufacturing and service in Norway.”

“Newcastle Airport proudly supports Australia’s defence industries which strengthens the economic resilience of the greater Hunter region. This one facility alone will generate over $100 million in economic benefits and provide 500 construction jobs and 100 permanent positions in the future.

“As well as offering a significant boost to the local economy, KDAu’s development will kickstart industry expansion and partnership through Newcastle Airport and RAAF Base Williamtown, opening the door for an abundance of opportunities to our local communities.

“In the 2024 Defence Industry Policy, Minister Conroy set a clear challenge for industry to bring external capital to fund the development of defence capability. It's great that the Hunter has risen to the challenge, with this sod turning being proof of our ability to deliver.

“This is a very exciting time as we are in the process of finalising several major property deals on our Astra Aerolab precinct, including for Lockheed Martin Australia and BAE Systems Australia who conduct maintenance and sustainment activities for the F-35 fleet based at RAAF Base Williamtown.”

Dr. Peter Cock said the Astra Aerolab property precinct strengthened Newcastle Airport’s commercial capability and would complement its already successful aviation business for decades to come.

“With our property precinct growing and Newcastle Airport opening its doors to the world on 1 August 2025, we are putting our best foot forward to be the airport our region deserves.”