The British government is set to award Italian defense company Leonardo a contract worth £1 billion ($1.3 billion) to build 23 new military helicopters. The deal will secure thousands of jobs at Britain’s last military helicopter manufacturing site in Yeovil, southwest England. It comes just days before a March 1 deadline for the contract decision.
The UK government chose Leonardo for the contract to build medium-lift support helicopters. A source close to the matter confirmed the decision to AFP on Friday.
The Yeovil factory employs roughly 3,000 people, and its future was uncertain without this deal. Leonardo had warned that the site might close if the contract did not go ahead.
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Roberto Cingolani, Leonardo’s CEO, told investors in November: “We cannot subsidise Yeovil forever” without a government contract. He added that keeping the large plant alive was difficult without institutional collaboration.
The company was the only bidder left for the contract after Airbus and Lockheed Martin both withdrew, according to press reports. The deal has faced multiple delays before this announcement.
The Unite union called the agreement a “tremendous victory” for workers and the wider aerospace sector. The Yeovil site dates back to 1915 and was originally built to manufacture aircraft during the First World War.
The contract comes as NATO allies face pressure to increase defense spending. Members have committed to spending five percent of national output on defense by 2035. US President Donald Trump has also pushed European nations to boost their defense budgets.
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UK Prime Minister Keir Starmer said last week that Britain needed to “go faster” in increasing military spending. The helicopter contract helps secure a strategic manufacturing capability while meeting broader defense goals.
