Leonardo has cautioned the UK government that it might have to close its helicopter manufacturing operations in Britain if it does not win a key £1 billion Ministry of Defence contract. This development could endanger the future of the country’s last remaining helicopter factory.
In a communication to Defence Secretary John Healey, Roberto Cingolani, Chief Executive of the Italian defence group, emphasised that the contract to replace the long-serving Puma helicopter is crucial to Leonardo’s long-term plans in the UK. Without securing this contract, the company would need to reconsider its entire UK operations, including its historic manufacturing base in Yeovil, Somerset, which employs approximately 3,300 people.
Currently, Leonardo’s AW149 helicopter remains the sole contender for the programme after Airbus and Lockheed Martin withdrew from the competition last year. The company submitted its final proposal in April, and the decision now lies with government ministers.
Cingolani has warned that any delay or cancellation of the programme would have significant repercussions. He stated in his letter, initially reported by the Telegraph, that the lack of new UK defence contracts would force Leonardo to rethink further investments in areas such as electronics and cybersecurity, in addition to its core helicopter manufacturing.
Leonardo, the successor to Westland Helicopters, has been producing military aircraft in Yeovil for decades. The company currently builds and supports over 100 helicopters for the British armed forces, including the Merlin and Wildcat fleets. The site also handles export orders for clients in the Middle East and North Africa. However, senior executives have made it clear that overseas work alone cannot sustain the factory in the long term.
Speaking to investors last month, Cingolani remarked that Leonardo could not “subsidise Yeovil forever,” noting that the company had not secured a major new helicopter manufacturing contract from the UK government in over ten years. “At some point we should consider why we keep a plant there for 15 years and don’t get anything,” he commented.
The Ministry of Defence has attempted to allay concerns, maintaining that no final procurement decision has been made. A spokesperson stated that officials continue to assess the business case for the new medium helicopter programme and that Leonardo’s tender is still under active evaluation.
Defence Minister Luke Pollard reiterated this stance in the House of Commons last week, noting that while Leonardo’s bid had been assessed, the process remains commercially sensitive, and no details on aircraft numbers, delivery schedules, or contract value could yet be disclosed.
The warning from Leonardo coincides with Prime Minister Sir Keir Starmer’s commitment to significantly increase UK defence spending, aiming to raise it to 3 per cent of GDP in the next parliament and to 3.5 per cent by 2035 under NATO obligations. For Leonardo, the Puma replacement contract is seen as a test of whether this promise will translate into sustained investment in Britain’s defence manufacturing sector.
Industry figures suggest that the decision could determine the future of sovereign helicopter production in the UK, with Yeovil’s fate dependent on a single decision that could either secure decades of skilled work or mark the end of an era for British aerospace manufacturing.
