Despite fears over WW3 erupting due to increased Russian aggression, the government is being accused of dragging their heels over the vital military contract.
THE NEW AW 149 HELICOPTERS (Image: -)
The UK’s last remaining military helicopter factory is in danger of spiralling out of business with the loss of 3,000 jobs unless a long-awaited order from the Ministry of Defence lands within the coming weeks. Highly skilled workers at Leonardo Helicopters – the Italian owner of the former Westland factory in Yeovil, Somerset – fear the company will follow through on threats to close the facility at the end of March, if the UK military fails to place an order for new helicopters by that time.
The firm was the only bidder for the £1billion New Medium Helicopter contract, which was launched in February 2024. However, delays in awarding the deal appear to have put the future of the factory at risk. The programme is to procure up to 44 medium-lift support helicopters to replace the Westland Puma HC2 and initially, the Bell 412 Griffin operated by the Royal Air Force; and the Bell 212 and Airbus AS365 Dauphin operated by the British Army.
An AgustaWestland AW189 helicopter is pictured at the Leonardo Helicopters factory on January 30, 20 (Image: AFP via Getty Images)
An employee of Leonardo Helicopters company work at a factory on January 30, 2018 in Vergiate, near (Image: AFP via Getty Images)
It was expected the new aircraft would enter service during the late-2020s.
Three manufacturers originally competed for the contract, Airbus Helicopters offering the H175M, Leonardo Helicopters offering the AW149 and Lockheed Martin offering the S-70M Blackhawk. In August 2024, only Leonardo had submitted a bid by the required deadline. But this “best and final offer” expires in March. One source close to the process told The Guardian the company needed to be told it had been awarded the deal by the end of this month if it was to meet the contract’s various deadlines.
They warned that a delay until after March risks having to restart the whole process, as the agreed price is dependent on Leonardo’s supply chain.
The helicopter is supposed to be in operation by later 2020s (Image: Jonathan Buckmaster)
“It’s critical at the moment,” the source told the paper.
In November, Leonardo’s chief executive, Roberto Cingolani, told investors he was negotiating with the MoD to try “to boost the collaboration with the UK government”, while in December he wrote to the defence secretary, John Healey, and threatened to scrap all investment in Britain, in a letter first reported by the Daily Telegraph.
Cingolani described the new medium helicopter contract as “a cornerstone” of Leonardo’s UK strategy and added: “Any delay or cancellation in the programme award … would force a re-evaluation of Leonardo’s UK presence, including investment in electronics and cyber security divisions.”
The process has stalled despite Labour ministers pledging to boost defence spending in light of the increased threat from Russia.
A security guard stands next to an AgustaWestland AW189 helicopter at a factory of Leonardo Helicopt (Image: AFP via Getty Images)
The logo of Leonardo Helicopters company is pictured at a factory on January 30, 2018 in Vergiate, n (Image: AFP via Getty Images)
FARNBOROUGH AIR SHOW (Image: Jonathan Buckmaster)
The defence industry has become frustrated by the wait for the government’s promised defence investment plan, which was expected before Christmas.
Sharon Graham, the general secretary of the Unite union, said: “Leonardo workers in Yeovil are looking over their shoulders, wondering where the next order will come from while the government dithers and delays. This uncertainty must end by confirming the order for medium-lift helicopters.”
An MoD spokesperson said: “The UK defence budget is rising to record levels as this government delivers the biggest boost to defence spending since the Cold War, totalling £270bn this parliament alone.
“Demands on defence are rising, with growing Russian aggression, increasing operational requirements and preparations for a Ukraine deployment.
“We are working flat out on the defence investment plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited.”
