Future of UK Helicopter Production in Jeopardy as Italian Firm Warns Time Is Running Out for £1BN MoD Deal

Britain's aerospace ambitions could face a major blow as defence giant Leonardo UK warns its historic Yeovil helicopter plant may not survive without a long-awaited £1 billion Ministry of Defence (MoD) contract.

A Race Against Time for the Yeovil Plant

The Somerset facility, which has been the backbone of Britain's helicopter production for over a century, is at risk if the government does not soon confirm its decision on the next-generation medium-lift helicopter programme.

Italian-owned Leonardo, one of the world's largest defence contractors, said its future in Yeovil hinges on the outcome of the MoD's ongoing procurement process — a deal that would see the RAF's ageing Puma fleet replaced by the firm's locally built AW149 model.

The company submitted its 'best and final' offer earlier this year and has since been waiting for confirmation. Leonardo UK employs over 3,000 workers at the Yeovil site, making it one of the region's biggest industrial employers.

Leonardo CEO: 'We Cannot Subsidise Yeovil Forever'

Leonardo's chief executive, Roberto Cingolani, issued a stark warning during his recent visit to the UK: the company cannot continue propping up the Yeovil plant without government orders.

'We cannot subsidise Yeovil forever — it's 14 years that we don't get any contracts from the UK Government,' Cingolani said, revealing he had personally raised the matter with Defence Secretary John Healey.

He added that he expects a decision on the £1 billion deal before the end of the year, stressing that government commitment is vital not only for national defence but for the future of British aerospace manufacturing.

MoD Says Process Is 'Ongoing'

In response, the MoD confirmed that Leonardo UK is the sole bidder for the contract and that it is 'continuing with the established procurement process'.

'The MoD is working at pace to deliver equipment for our Armed Forces, back UK companies and create jobs across the country,' a spokesperson said, noting that a decision in principle is expected before year's end.

A Legacy at Stake

The Yeovil site, opened in 1915 as the Westland Aircraft Works, has long been synonymous with British aviation heritage.

It produced aircraft for World War One, later transitioning to helicopters under Sikorsky's licence — including the iconic Sea King and AW101 Merlin.

At its peak in the 1980s, the site employed more than 11,000 people.

Today, its future may depend on whether Leonardo secures the MoD's £1 billion contract — a deal that could not only sustain thousands of skilled jobs but also ensure Britain's continued role as a global leader in aerospace innovation.