AAP

Quickstep Holdings Ltd has struck an agreement with Lockheed Martin Corporation and another US aerospace giant that puts it on track to win a $700 million plus contract to manufacture components for the joint strike fighter (JSF) aircraft.

Shares in Quickstep soared on the news, rising 10.5 cents, or 27.63 per cent, to end at 48.5 cents on Wednesday after reaching a high of 65 cents in intraday trade.

The new generation JSF aircraft is being developed for US and UK armed forces and allies, while the Australian government plans to acquire up to 100 to replace its Hornets and F-111s from 2012.

Quickstep, which makes advanced composite components, has signed a memorandum of understanding (MoU) with Lockheed Martin and Northrop Frumman Systems Corporation to build key components for the JSF.

Quickstep, which manufactures strong, lightweight composite products for the aerospace sector at facilities south of Perth, says the deal could generate more than $50 million in annual turnover by 2015.

The contract is planned to last between 20 and 30 years.

Quickstep expects to sign a final long-term agreement with Lockheed and Northrop in March next year.

Quickstep managing director Philippe Odouard said the MoU provided the company with "a stable platform in the long-term to pick up further business".

He said Quickstep was in talks with other parties regarding further possible JSF-related contracts.

"There is a great interest worldwide and we're not limited at all by the fact we're coming from Australia," he told AAP.

"There's a lot of interest offshore in the technologies we've developed."

He said the company planned to expand its manufacturing facilities to other Australian states as it won more contracts in the global defence space.

Mr Odouard said Quickstep would consider Victoria, New South Wales and Queensland, where the composites manufacturing sector is more advanced than Western Australia.

"We are looking at different ways to position in Australia."

The global composites manufacturing market was projected to grow at about 20 per cent per annum, he said.