A major defence contractor has threatened to withdraw from the UK over a lack of “government collaboration” – as global tensions continue to rise.
Leonardo has issued an ultimatum to the government, threatening to withdraw from Westland in March (Image: Getty)
Britain’s last military helicopter factory could be forced to shut within months, putting the country in a vulnerable position as global tensions mount. Leonardo, one of Europe’s biggest defence contractors, is preparing to withdraw from the UK by the end of March unless a new Government contract is secured, according to reports. The Italian firm has overseen the Westland factory in Yeovil, Somerset – often dubbed the “home of British helicopters” – for around a decade.
Its retreat could jeopardise sovereign UK military helicopter production during a period of increasing global instability, following US President Donald Trump‘s strikes on Venezuala and threats of annexing Greenland, alongside the ever-present menace of Vladimir Putin‘s Russia. Uncertainty over the factory’s future follows a dire warning from NATO official James Appathurai, who said earlier this week that Europe faces “a real risk of war” and urged countries including the UK to deter the threat by demonstrating “capability”.
The MoD has yet to award Leonardo a helicopter production contract (Image: Getty)
Leonardo was the only bidder for the £1billion contract to deliver the Ministry of Defence’s (MoD) new medium-sized helicopters programme last year, but has yet to be officially awarded the undertaking.
Chief executive Roberto Cingolani told investors in November that the firm “cannot subsidise Yeovil forever” and expressed frustration at a long-term lack of cooperation from UK officials.
“It is 14 years that we haven’t had any contract from the UK Government,” he said, as per The Times. “It’s getting difficult for us to keep this big plant alive without an institutional collaboration.
“Should this not happen, well, we should seriously consider why we keep a plant there. A decision is [expected] by the end of the year, so we really are at the last mile. We [won’t have to wait] for long.”
After 2025 ended with no agreement in place, the firm reportedly delivered an ultimatum to the Government, threatening to leave the country by March unless a contract is secured.
As well as posing a security risk to the country, the factory’s closure could have widespread repercussions for the local jobs market, with over 3,000 people employed in the Yeovil area and the supply chain estimated to support a further 10,000 positions.
Sharon Graham general secretary of the Unite union, told The Times: “The UK’s increased defence budget must be used to boost jobs, growth and sovereign capability here in the UK.
“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.”
Sir Keir Starmer has pledged to increase core defence spending to 3.5% of the GDP by 2035, but reports earlier this month suggested that the increase would still result in a £28 billion shortfall.
An MoD spokesperson said: “The UK’s new medium helicopter programme is ongoing and no final procurement decisions have yet been made. That outcome will be confirmed in due course. We are working flat-out on the defence investment plan, which will fix the outdated, over-committed and under-funded defence programme we inherited.”
