3,000 jobs at risk unless MoD signs helicopter order, sources say | Aerospace industry
Britain’s last military helicopter factory should receive a long-awaited order from the Ministry of Defense in the coming weeks to secure around 3,000 manufacturing jobs, industry sources suggest.
Skilled workers at Leonardo Helicopters, the Italian owner of the former Westland factory in Yeovil, Somerset, fear the company will follow through on its threat to close the plant at the end of March if the UK military does not order new helicopters by then.
Leonardo was the sole bidder for the UK’s £1bn “new medium helicopter” contract, which launched in February 2024, but delays in getting the deal done appear to have put the factory’s future at risk.
The bid’s “best and final offer” expires in March. A source close to the process suggested the company should have been told the deal was awarded by January in order for the contract to meet various deadlines.
Since the price depends on Leonardo’s supply chain, a delay until after March would risk restarting the entire process. “The situation is critical right now,” the source said.
In November, Leonardo’s chief executive Roberto Cingolani told investors he was negotiating with the Ministry of Defense “to increase cooperation with the UK government”, while in December he wrote to the defense secretary John Healey and threatened to cancel all investments in the UK. The letter was first reported by the Daily Telegraph.
Cingolani described the new medium helicopter contract as the “cornerstone” of Leonardo’s UK strategy, adding: “Any delays or cancellations in the program tender… will force a reassessment of Leonardo’s presence in the UK, including investment in its electronics and cybersecurity divisions.”
The process has stalled despite ministers promising to increase defense spending in the face of the growing threat from Russia. The defense industry is disappointed with the wait for the government’s promised defense investment plan. expected before Christmas.
Sharon Graham, general secretary of the Unite union, said: “As the government hesitates and delays, Leonardo workers in Yeovil are looking over their shoulders wondering where the next order will come from. This uncertainty must end with the order for the medium lift helicopter confirmed.”
A Ministry of Defense spokesman said: “The UK’s defense budget is soaring to record levels as this government delivers the biggest increase in defense spending since the cold war, totaling £270bn in this parliament alone.
“Defense demands are also increasing as Russia’s aggression increases, operational requirements increase, and preparations for the deployment of Ukraine increase.
“We are working hard on a defense investment plan that will fix the outdated, overcommitted and underfunded defense program we inherited.”
