The US aviation giant Boeing is moving first time out of North America to produce military drones in Australia.

- World aviation giant Boeing has selected Toowoomba as the preferred site for an uncrewed aircraft production facility - Queensland Prime Minister Annastacia Palaszczuk and the region’s Treasurer and Minister for Investment Cameron Dick in a joint statement.

The statement, released on Wednesday, said the step was to partner with the private sector to “grow Queensland’s advanced manufacturing sector *which* is an important part of the Palaszczuk Government’s Economic Recovery Plan.”

Announcement comes days after the US, UK and Australian federal government announced a defense pact – AUKUS – under which Canberra will get technology to produce nuclear-powered submarines.

- The uncrewed aircraft is designed to operate as a team, using artificial intelligence to extend the capabilities of crewed and uncrewed platforms - the statement said.

The US aviation giant will establish the facility at Toowoomba’s Wellcamp Aerospace and Defense Precinct to produce and assemble the Boeing Airpower Teaming System – also called “Loyal Wingman”.

- It will be subject to defense orders - the statement said.

- The aircraft made its first flight in February 2021 and is the first military combat aircraft designed, developed and manufactured in Australia in half a century - it added.

- This has the potential to greatly improve our state’s advanced manufacturing capability and help shape a workforce of Queenslanders with the skills to build some of the world’s most cutting-edge aircraft - said Palaszczuk.

- Boeing Australia is currently developing six aircrafts in partnership with the Royal Australian Air Force, with flight testing ongoing - the statement read.