A UK military helicopter factory is teetering on the brink of collapse unless it secures a £1 billion contract to produce new helicopters by March. Industry insiders say around 3,000 jobs at Leonardo Helicopters' Yeovil facility are hanging in the balance.
Leonardo won the "new medium helicopter" contract but delays in awarding the deal have put its future under pressure. The company needs to know it has been awarded the contract by January if it is to meet the various deadlines and avoid having to restart the process, which would be costly due to its dependence on supply chains.
The situation has left workers at the Yeovil factory feeling anxious about their jobs as they await news of the contract. The Unite union general secretary, Sharon Graham, has urged the government to confirm the order as soon as possible to avoid uncertainty for the workforce.
A Ministry of Defence spokesperson defended the government's approach, saying it is committed to increasing defence spending and that the contract award process was being worked on despite delays. However, critics argue that these promises have been made before without being followed through.
Leonardo has previously threatened to scrap its investment in Britain if it does not receive a clear commitment from the MoD. The company's chief executive, Roberto Cingolani, described the new medium helicopter contract as "a cornerstone" of Leonardo's UK strategy, and any delay or cancellation would force a reevaluation of its UK presence.
With tensions between Russia and Western countries escalating, the government has pledged to boost defence spending to address these challenges. However, the lack of clarity on key contracts such as this one is causing frustration in the defence industry.
Leonardo won the "new medium helicopter" contract but delays in awarding the deal have put its future under pressure. The company needs to know it has been awarded the contract by January if it is to meet the various deadlines and avoid having to restart the process, which would be costly due to its dependence on supply chains.
The situation has left workers at the Yeovil factory feeling anxious about their jobs as they await news of the contract. The Unite union general secretary, Sharon Graham, has urged the government to confirm the order as soon as possible to avoid uncertainty for the workforce.
A Ministry of Defence spokesperson defended the government's approach, saying it is committed to increasing defence spending and that the contract award process was being worked on despite delays. However, critics argue that these promises have been made before without being followed through.
Leonardo has previously threatened to scrap its investment in Britain if it does not receive a clear commitment from the MoD. The company's chief executive, Roberto Cingolani, described the new medium helicopter contract as "a cornerstone" of Leonardo's UK strategy, and any delay or cancellation would force a reevaluation of its UK presence.
With tensions between Russia and Western countries escalating, the government has pledged to boost defence spending to address these challenges. However, the lack of clarity on key contracts such as this one is causing frustration in the defence industry.