Up to 3,000 skilled manufacturing jobs could be at risk if the Defense Department doesn’t place a long-delayed helicopter order as quickly as possible, according to industry sources close to the program.
Workers at Leonardo Helicopters’ Yeovil site in Somerset, the UK’s last remaining military helicopter factory, fear the company could close the facility as early as the end of March if the government does not agree to a new contract within weeks.
Leonardo, the Italian defense group that acquired the former Westland Helicopters business, is the sole bidder for the £1bn New Medium Helicopter program launched by the Ministry of Defense in February 2024. However, lengthy delays in awarding the contract have raised doubts about the future of the site.
Industry insiders say the offer’s “best and final offer” expires in March and pricing depends on complex global supply chain commitments. According to a source, Leonardo would have needed confirmation by January to meet production and delivery deadlines. Any delay beyond March risks having to restart the entire procurement process.
“It’s critical right now,” the source said. “If this goes beyond March, the price and the bid itself may no longer be valid.”
The problem has escalated in recent months. In November, Roberto Cingolani, Leonardo’s chief executive, told investors that talks were underway with the British government to strengthen cooperation. In December he wrote directly to Defense Secretary John Healey warning that delays could result in Leonardo abandoning future investments in the UK – including in its electronics and cybersecurity activities.
Cingolani described the medium helicopter contract as a “cornerstone” of Leonardo’s UK strategy, adding that any cancellation or further delay would trigger a “reassessment” of the company’s presence in the UK.
The standoff comes despite repeated pledges from ministers to boost defense spending in response to heightened geopolitical risks, particularly Russia’s aggression in Ukraine. Defense suppliers are increasingly frustrated by the lack of a long-promised defense investment plan that had been expected before Christmas.
Unite has warned that the uncertainty is undermining workforce confidence. Sharon Graham, the union’s general secretary, said staff at Yeovil were being left in limbo while the government delayed decisions.
“Leonardo workers look over their shoulders and wonder where the next job will come from,” she said. “This uncertainty must end and the government should confirm the medium helicopter order now.”
The Defense Ministry said it was working on a new defense investment plan, citing record levels of planned spending. A spokesman said the government would commit £270 billion to defense over the current term, describing the inherited defense program as “overcommitted and underfunded”.
However, for Yeovil the timetable is much shorter. Without quick action, industry experts risk Britain losing not only thousands of skilled jobs but also its last domestic ability to build military helicopters – a blow that would be difficult, if not impossible, to reverse.
