The $200 million hangar, state and federal governments said today, will be built on a 16-hectare state government-owned site at Penfield, adjacent to RAAF Base Edinburgh in Adelaide’s north.

The 2.1 hectare facility includes a 240 metre long*, 60 metre wide and 25 metre high hangar which will house four aircraft bays reserved for the extensive maintenance and upgrade of the RAAF’s fleet of 18 Boeing 737 reconnaissance aircraft.

These include the P-8A Poseidon maritime patrol aircraft, already based in Edinburgh, and the E-7A Wedgetail early warning aircraft, currently based at Williamtown, near Newcastle, New South Wales.

The state government will cover the $200 million cost of building the shed, but the federal government will reimburse it by leasing the land.

The hangar, located south of Womma Road, is scheduled for completion in mid-2026.

Defence Industry Minister Pat Conroy said the “huge hall” would create 450 jobs during construction and 50 permanent jobs for avionics and engineering specialists.

“This is the first time we’ll be able to do this level of conservation in Australia, so it’s a real gift to our independence and sovereignty,” he told ABC Radio Adelaide.

“This is truly a breakthrough moment because this type of work has been done in the United States before.

“We would need to fly P-8s and Wedgetails for in-depth maintenance and upgrades.

“Now we can do it in Australia, which means we have more independence and it reduces the time they are offline.”

The RAAF currently operates 12 P-8A Poseidon and six E-7A Wedgetail aircraft.

RAAF P-8A Poseidon aircraft. Photo: RAAF

Work performed in the new hangar will consist of hourly maintenance activities, including aircraft structural inspection and upgrades to install new mission systems.

Boeing Defence Australia managing director Amy List said the facility’s location next to RAAF Base Edinburgh, where the P-8As operate, was “really important because it means that if there are any maintenance issues we can speak directly to the operators”.

“It really speeds up the work and gives us confidence that we’re doing it safely,” she added.

The announcement comes amid a wider interest in South Australia’s defence industry, which has been tasked with building six Hunter-class frigates and at least five nuclear-powered submarines at Osborne Naval Shipyards – amid serious questions about the state’s ability to sustain the project.

State Treasurer Stephen Mullighan, who was given responsibility for the defence and space industries as part of a government reshuffle earlier this year, said the Penfield hangar was evidence of the state government “attracting further expansion of the defence industry”.

“It’s really positive for our economy,” he said.

“The defence industry plays a critical role in our government’s efforts to transform our economy into a more complex, higher-skilled and better-paid economy.

“Having this facility here not only helps us achieve that, but it also sends a clear signal to the Commonwealth Government that it will always have a willing partner in South Australia to support its efforts to deliver as much work as possible in Australia.”

*A previous version of this story incorrectly stated that the hangar was only 24 metres long.