Update: March 2026 – deal signed, read the article here
Despite the UK Government’s talk about boosting investment in the UK defence industry and headline announcements of high value contracts they still haven’t approved the contract for a new medium helicopter that was launched back in February 2024. For Leonardo Helicopters the contract is a make or break deal for their Yeovil factory and have stated that they will be closing the plant if the deal doesn’t go through, with the loss of 3,000 jobs.
The news has been reported across most of the UK mainstream press from the Guardian to The Sun, the Express predictably having the most hysterical title that managed to get ‘fears of World War Three’ in it.
The former Westland factory needs this contract to be signed off by the end of March, as the quoted supply chain and material cost guarantees only run up to then. In reality Leonardo need to know by the end of January to be able to meet any of the deadlines for the contract.
Leonardo Chief Exec threatens MOD
Leonardo’s chief executive, Roberto Cingolani wrote to John Healey, the UK defence secretary, back in November threatening to pull all investment in the UK if there wasn’t more ‘collaboration’ from the Government. The new medium helo would be a major part of that collaboration, and without it there would be “a reevaluation of Leonardo’s UK presence, including investment in electronics and cyber security divisions.”
Leonardo Helicopters is the sole contender
There are worrying rumblings surrounding the long promised defence Investment Plan, which was delayed by Number 10 over spending concerns late last year. As Leonardo’s AW149 helicopter emerged in 2025 as the sole contender for this £1bn contract it seems like a simple yes or no decision. A ’no’ would destroy jobs and helo production in the UK, in fact a raft of contracts hang in the balance, the Unite Union has “concerns over jobs associated with the new Typhoon aircraft for the RAF, an order for medium lift helicopters, the purchase of military transporter planes and the UK’s military satellite programme. Contracts in all areas are understood to be reliant on the decisions made in the ministry of defence’s, Defence Investment Plan.”
Most political parties accept that defence spending needs to be increased, added to which the current global situation seems to necessitate defence investment in the UK – so not green-lighting contracts that have been in the pipeline for some years seems counter intuitive. The Defence Investment Plan needs to be issued and actioned sooner rather than later.
