The future of Britain's last military helicopter manufacturing site and approximately 3,000 skilled jobs hangs in the balance, dependent on a critical contract decision from the Ministry of Defence (MoD) in the coming weeks.
Imminent Factory Closure Threat in Somerset
Industry sources have revealed that Leonardo Helicopters may be forced to close its historic factory in Yeovil, Somerset, if the MoD fails to place an order for its new medium helicopter by the end of March. The facility, the former Westland plant, is a cornerstone of UK aerospace and defence manufacturing.
The Italian-owned company submitted the sole bid for the UK's £1bn "new medium helicopter" programme, launched in February 2024. However, protracted delays in awarding the contract have now created a severe crisis. The company's "best and final offer" for the deal is set to expire next month.
A Race Against Time for UK Defence
One source close to the negotiations indicated that Leonardo needed confirmation of the contract award by January to meet the programme's various deadlines. A postponement beyond March risks collapsing the entire process, as the quoted price is locked to the company's current supply chain agreements. "It's critical at the moment," the source stated.
The stalemate persists despite government pledges to bolster defence spending in response to heightened threats from Russia. The defence sector has grown increasingly frustrated waiting for the government's promised defence investment plan, which was anticipated before Christmas.
Corporate Warnings and Union Appeals
In a stark warning, Leonardo's Chief Executive, Roberto Cingolani, wrote to Defence Secretary John Healey in December. He threatened to scrap all future investment in the UK, including in electronics and cyber security divisions, if the helicopter contract was delayed or cancelled. Cingolani described the programme as "a cornerstone" of Leonardo's UK strategy.
Sharon Graham, General Secretary of the Unite union, voiced strong support for the anxious workforce. "Leonardo workers in Yeovil are looking over their shoulders wondering where the next order will come from while the government dithers and delays," she said. "This uncertainty must end by confirming the order for medium-lift helicopters."
The MoD responded by highlighting the government's commitment to increased defence spending, totalling £270bn this parliament. A spokesperson said: "We are working flat out on the defence investment plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited."
With the March deadline fast approaching, the fate of a vital UK industrial capability and thousands of skilled jobs in the South West now rests squarely on an urgent decision from Whitehall.
