Leonardo has warned the British government that it may be forced to halt its helicopter production in the UK if it fails to secure a flagship £1bn Defense Ministry contract, a move that would jeopardize the future of the country’s last remaining helicopter factory.
In a letter to Defense Secretary John Healey, Roberto Cingolani, chief executive of the Italian defense group, said the contract to replace the long-serving Puma helicopter was central to Leonardo’s long-term commitment to the UK. Without them, the company would be forced to reassess its entire UK presence, including its historic manufacturing base in Yeovil, Somerset, which employs around 3,300 people.
Leonardo’s AW149 helicopter is currently the only remaining candidate for the program after Airbus and Lockheed Martin withdrew from the competition last year. The company submitted its final offer in April and the decision now rests with ministers.
Cingolani warned that any delay or cancellation of the program would have serious consequences. In his letter, first reported by the Telegraph, he said the lack of new UK defense contracts would force Leonardo to reconsider further investment in areas such as electronics and cybersecurity, in addition to core helicopter manufacturing.
Leonardo, the successor to Westland Helicopters, has been producing military aircraft in Yeovil for decades and currently builds and supports more than 100 helicopters for the British Armed Forces, including the Merlin and Wildcat fleets. The site also serves export orders for customers in the Middle East and North Africa, but senior executives have made it clear that overseas work alone cannot sustain the factory indefinitely.
In a call with investors last month, Cingolani said Leonardo could not “subsidize Yeovil forever” and pointed out that the company had not received a major new helicopter manufacturing contract from the British government in more than a decade. “At some point we should think about why we leave a plant there for 15 years and get nothing,” he said.
The Defense Ministry tried to downplay the concerns, emphasizing that no final procurement decision had been made. A spokesman said officials were continuing to assess the business case for the new medium helicopter program, adding that the tender submitted by Leonardo was still in active evaluation.
Defense Minister Luke Pollard reiterated that position in the House of Commons last week, saying that while Leonardo’s offer had been considered, the process remained commercially sensitive and details on aircraft numbers, delivery schedules or contract value could not yet be revealed.
The warning comes as Prime Minister Sir Keir Starmer has pledged to significantly increase the UK’s defense spending, committing to increasing it to 3 percent of GDP in the next parliament and to 3.5 percent by 2035 under NATO commitments. For Leonardo, the Puma replacement contract is seen as a test of whether this rhetoric will lead to sustained investment in the UK defense production base.
Industry insiders say the outcome could determine the future of sovereign helicopter production in the UK, with Yeovil’s fate hanging on a single decision that could either secure decades of skilled work – or signal the end of an era for British aerospace production.
