The extension of the naval shipyard in Adelaide will dwarf its current infrastructure and replace job losses in the state's manufacturing industry, federal Defence Industry Minister Christopher Pyne says.
The minister turned the first sod on Thursday to start construction on a $535 million expansion which will help the federal government deliver its 100-year continuous shipbuilding program.
Once the expansion is complete, jobs in the shipbuilding precinct are expected to grow, hitting 5000 by mid-2020.
Mr Pyne said he hoped each stage of the shipbuilding program would allow workers currently employed to keep their jobs.
"There are about 1000 workers here at Osborne," he said.
"We want all of those people to transfer across to the off-shore patrol vessels, the future frigates, and potentially the submarines."
He rejected any suggestions the job opportunities were short term.
"It's not that we're trying to reduce the workforce, we're trying to increase it five-fold," the minister said.
South Australia's Deputy Opposition Leader Vickie Chapman was hopeful local workers would capitalise on the jobs on offer.
"We have nation leading shipbuilding infrastructure at Osborne and a highly skilled workforce, but we must ensure we further develop our skills to take full advantage of these shipbuilding opportunities," she said.
"It would be a wasted opportunity if we have to bring employees in from interstate and overseas."
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