Up to 3,000 skilled manufacturing jobs could be at risk unless the Defense Department moves quickly to place a long-delayed helicopter order, according to industry sources close to the program.
Workers at Leonardo Helicopters’s Yeovil site in Somerset, the UK’s last military helicopter factory, fear the company could close the facility by the end of March if the government fails to commit to a new contract within weeks.
Leonardo, the Italian-owned defense group that acquired the former Westland Helicopters business, is the sole bidder for the £1bn “new helicopter” programme, launched by the Ministry of Defense in February 2024. However, long delays in awarding the contract have cast doubt on the future of the site.
Industry insiders say the “best and last” bid will expire in March, and prices are subject to complex international obligations. Another source said Leonardo would have needed confirmation in January to meet production and delivery deadlines. Any delay beyond March risks forcing the entire procurement process to start over.
“It’s important right now,” said the source. “If this passes in March, the price and the bid itself may no longer be valid.”
The issue has escalated in recent months. In November, Leonardo’s chief executive, Roberto Cingolani, told investors that talks are ongoing with the UK government to strengthen cooperation. In December, he wrote directly to Defense Secretary John Healey, warning that the delay could lead to Leonardo abandoning future investments in the UK – including its electronics and cyber security activities.
Cingolani described the helicopter contract as a “cornerstone” of Leonardo’s UK strategy, adding that any cancellations or further delays would trigger a “re-evaluation” of the company’s presence in Britain.
The disagreement comes despite repeated pledges by ministers to increase defense spending due to the country’s growing threats, particularly Russian aggression in Ukraine. Defense providers have grown increasingly frustrated with the absence of a long-promised defense investment plan, which was expected to arrive before Christmas.
Unite has warned that the uncertainty is eroding confidence among workers. Sharon Graham, general secretary of the union, said Yeovil workers were left confused as the government delayed decisions.
“Leonardo’s employees are looking over their shoulders wondering where the next order will come from,” he said. “This uncertainty must end, and the government must confirm the helicopter command now.”
The Ministry of Defense said it was working on a new defense investment plan and highlighted record levels of planned spending. A spokesman said the government would commit £270bn to defense during the current parliament, describing the inherited defense system as “overcommitted and underfunded”.
For Yeovil, however, the timeline is much shorter. Without immediate action, industry figures warn that Britain risks losing not only thousands of skilled jobs, but its last remaining domestic capacity to build helicopters – which would be difficult, if not impossible, to reverse.
