UK seals £1bn Leonardo military helicopter contract, ramps up defence capability

The UK government announced on Monday that it has finalised a £1 billion ($1.3 billion) agreement with the British arm of Italian defence major Leonardo for the supply of 23 medium-lift military helicopters.The British ministry of defence said the order will safeguard around 3,300 jobs at Yeovil in southwest England, the country’s only remaining military helicopter manufacturing site, reported news agency AFP.The facility, which has operated since 1915 during the First World War, had faced an uncertain future, with Leonardo warning of possible closure if the contract failed to materialise. Such a move would also have impacted a network of dozens of UK-based suppliers.

Defence secretary John Healey said the arrangement would establish Yeovil as “the proud home of Leonardo's global military helicopter production”.The ministry indicated the programme could generate up to £15 billion over the next 10 years, highlighting that about 20 nations are expected to seek new medium-lift helicopters in the coming period.Officials also said the deal supports Britain’s plans to advance autonomous aviation capability.

Leonardo is currently developing the UK’s first autonomous uncrewed air system, Proteus.“This defence investment works for Britain on every level,” Healey said. “It strengthens our armed Forces, secures thousands of skilled British jobs, and sets up big export opportunities,” he added, calling it “a major vote of confidence” in Britain.The Unite union welcomed the development, describing it as a “tremendous victory” for employees and the broader aerospace industry.Leonardo remained the only contender for the contract after Airbus and Lockheed Martin withdrew from the competition, media reports said.