Leonardo Expresses Optimism Over Somerset Factory's Future Amid £1bn Contract Negotiations
The Italian-headquartered helicopter manufacturer Leonardo has indicated a positive outlook for its sole UK factory in Yeovil, Somerset, following recent discussions with the British government regarding a critical £1bn contract. This development comes just three months after the company warned that the historic site was under significant threat due to delays in finalising the agreement.
Historic Aerospace Hub at Stake
Leonardo's Yeovil facility, which has served as a cornerstone of the West Country's aerospace industry for over a century, employs thousands of workers directly and supports numerous roles within the supply chain. Although the site produces helicopters for civil applications, such as search and rescue operations, the Ministry of Defence remains its most vital customer. A potential withdrawal from Somerset would have severe repercussions for the regional economy, highlighting the urgency of the ongoing negotiations.
From Uncertainty to Hope
In November, Leonardo's chief, Roberto Cingolani, informed investors that the company could not indefinitely subsidise the Yeovil plant amidst protracted talks with the UK government. As the sole bidder for the contract, Leonardo has been engaged in discussions with ministers for months, leaving its workforce of approximately 3,000 employees in a state of uncertainty. However, Adam Wardrope, Leonardo's vice president of market development, has now conveyed a sense of optimism after productive recent dialogues with officials.
Innovation and Workforce Concerns
The contract in question focuses on Leonardo's conventional helicopters, but the company has also unveiled Proteus, Britain's first autonomous full-size helicopter, earlier in February. Designed for missions like anti-submarine warfare, Proteus represents a forward-looking element for Yeovil. Despite this innovation, Mr Wardrope emphasised to the BBC that the Somerset workforce is "desperate" for clarity on the factory's future, even as they remain busy with projects such as Proteus, support contracts, and international customer services.
Union and Political Pressures
Ben Clarke of the workers union Unite highlighted the confusion among employees, stating that the government's delays in providing a definitive answer are placing immense pressure on both Leonardo and the local constituency. This situation coincides with reports that Prime Minister Sir Keir Starmer is considering an increase in UK defence spending, which could influence the outcome of the contract talks and secure the long-term viability of the Yeovil site.
