The future of Britain's last remaining helicopter manufacturing facility is hanging in the balance, with its Italian owner issuing a stark warning about its survival.
£1 Billion Contract Crucial for Survival
Roberto Cingolani, chief executive of defence giant Leonardo, has told investors that the company cannot "subsidise Yeovil forever" without securing a crucial £1 billion contract from the Ministry of Defence. The comments came during an investor call last week where the future of the Somerset site was openly discussed.
The Leonardo factory in Yeovil has emerged as the sole remaining contender to replace the Royal Air Force's ageing Puma helicopter fleet with its modern AW149 super-medium-twin helicopter. The company submitted its best and final offer to the MoD in April, but a decision has been pending for months.
Historic Site and Local Economy at Risk
The Yeovil facility represents more than just a manufacturing plant - it's a century-old aerospace hub that employs thousands of people directly and through its extensive supply chain. What makes this site particularly significant is that it's the only place in Britain that still designs, develops and manufactures helicopters from start to finish.
Mr Cingolani revealed he recently visited the UK and met with Defence Secretary John Healey to discuss the need for greater government support for the Yeovil operation. The two are scheduled to continue negotiations later this month in Naples.
"We are trying to boost collaboration with the UK government," stated Mr Cingolani. "We have a plant in Yeovil that is not getting industrial grants, or government grants, for 14 years. In order for this plant to stay subsidised by [Leonardo], we need to have more participation [from the UK government]."
Decision Expected Before Year End
Leonardo expects the Ministry of Defence to reach a decision on the vital contract before the end of the year. While expressing cautious optimism, Mr Cingolani acknowledged the complexity of such tenders, noting that "there is lots of political influence behind them."
The potential withdrawal from the historic Somerset site would deliver a devastating blow to the local economy. More than 3,100 staff work at the facility, including contractors and 150 trainee graduates and apprentices across various departments such as research and innovation, air traffic control and flight safety.
Although the site produces helicopters for civil purposes like search and rescue operations, the Ministry of Defence remains Leonardo's most important customer in the UK.
In an official statement, the MoD confirmed that only Leonardo UK was tendering for the helicopter competition and that it was "continuing with the established procurement process." The department added that it was "working at pace to deliver equipment for our armed forces, back UK companies and create jobs across the country," with a decision in principle expected before year end.
