Gov. Kay Ivey on Monday welcomed plans by global defense contractor BAE Systems to launch a major expansion that will create a substantial number of jobs and add new capabilities at its operations in Huntsville.

In an announcement coinciding with the start of the Farnborough International Airshow near London today, BAE Systems revealed the $45.5 million project to expand its operations in Alabama. The company said the expansion will create hundreds of new jobs.

“BAE Systems’ decision to carry out this significant expansion project in Huntsville is a powerful testament to the expertise that makes Alabama’s ‘Rocket City’ an aerospace hub,” said Governor Ivey, who is attending the air show with a state business development team.

“It’s great to see a world-class company like BAE Systems expand its presence — and create good jobs — in Alabama, where aerospace is continuing to take off,” she added.

 BAE Systems said the multi-phase growth plan includes the immediate expansion of its offices at Discovery Drive in Huntsville and the development of a state-of-the-art manufacturing and office space facility in the Cummings Research Park.

Work at the facility will consist of new programs and existing business, including the design, development, and manufacturing of precision munitions and aircraft survivability technology. The increased capacity will enable the company to execute on its commitments to customers while positioning it to address surging demand for key products.

 “Our expansion in Huntsville provides us a great opportunity to establish a closer working relationship with our critical customers in the U.S. Army and the Redstone Arsenal community,” said Paul Markwardt, vice president and general manager of Survivability, Targeting, and Sensing Solutions at BAE Systems. “Huntsville is a good location to attract the key talent needed to develop and deliver important new capabilities to our customers.”

BAE Systems is working with Huntsville developer Samples Properties, Fuqua & Partners Architects, and Pearce Construction to build its new 83,000-square-foot facility, which will include engineering development space, manufacturing space, and Department of Defense lab space. A 20-acre site for the building will provide expansion room for phased growth in the future.

Construction of the new building will begin this year and is expected to be complete in 2019.