The construction shed for Australia's new fleet of submarines will be bigger than Adelaide Oval, Defence Industry Minister Christopher Pyne says.
The scale of the project will create jobs opportunities in SA, both in construction and the supply of materials, the minister told reporters.
"When the new submarine yard is completed, the shed will actually be bigger than the Adelaide Oval stadium," he said.
"So we're talking about a lot of concrete, steel, cabling, construction jobs and work for decades into the future."
The federal government on Monday signed off on a $7 million contract with services and technology company KBR to design the new construction yard for the 12 submarines in Adelaide.
The design work will support 100 jobs, to add to those already created on the submarine project which the minister said remained on schedule.
Mr Pyne said the construction yard was a vital piece of infrastructure and would sit alongside the surface shipyard, which would deliver the Royal Australian Navy's new frigates.
"KBR has extensive experience in this field and it's great they have partnered with Naval Group Australia to complete the concept design for the state of the art construction yard where our future submarine fleet will be built," he said.
"This program is not only transforming our Navy but changing the lives of Australians by giving them exciting work for decades to come."
Monday's announcement was the first official engagement for new South Australian Premier Steven Marshall, who reaffirmed his intention to take the defence industries portfolio.
Mr Pyne said that sent a clear message to the public and to the defence and business sectors that the new premier was focused on jobs and growth for South Australia.
Mr Marshall said the defence industry was vital to SA's future success.
"We know that there is an enormous opportunity from submarines, from ships, from the offshore patrols vessels that are coming our way and that's why I want to take this important portfolio," he said.
