Leonardo Aircraft Plant in the UK Faces Threat as Contract Delays Mount

Persistent delays in signing contracts for the AW149 helicopters could put the future of Leonardo’s aircraft plant in the United Kingdom at risk.

According to The Telegraph, Leonardo CEO Roberto Cingolani has warned the UK Secretary of State for Defence that any further delays in finalizing the contracts could threaten the company’s ability to continue operating in the country.

Leonardo is a major defense industry company headquartered in Italy. The company has a significant presence in the United Kingdom, including helicopter production in Yeovil, which is historically linked to the Westland company.

This could also include halting investments in other facilities focused on radar systems and electronic warfare capabilities.

As the publication notes, it has been clear for the past several years that the future of the Yeovil plant largely depends on the outcome of the £1 billion New Medium Helicopter (NMH) contract. Despite Leonardo’s bid with the AW149 platform remaining the only one, after other competitors withdrew more than a year ago, the UK Ministry of Defence has yet to formally place the order.

One of the key requirements of the competition was that more than 30% of the components be manufactured in the United Kingdom, or that the helicopter be fully produced domestically.

As part of its bid for the NMH contract, Leonardo stated that it would relocate production of the AW101 and AW149 helicopters to Yeovil. The company also pledged to secure a steady flow of orders for the plant, including “hundreds of helicopters” from other countries.

The AW149 helicopter is expected to replace the Puma HC2, Bell 212, Griffin HAR.2, and Dauphin AH.1 in Army Aviation service. The new helicopter is intended to expand capabilities by providing a versatile, multi-role platform.

The delay has occurred despite ministers’ pledges to increase defence spending in response to the growing threat from Russia. Around 3,300 people are employed at the Yeovil site alone, with a further 9,000 jobs in supply chains dependent on the facility. Leonardo also operates smaller sites in Edinburgh, Newcastle, Lincoln, Luton, Bristol, Basildon, London, and Southampton.

One defence industry insider interviewed by the publication placed responsibility for the paralysis in the United Kingdom on a deadlock between the Treasury and the Ministry of Defence, which is facing a multi-billion-pound budget shortfall.

Norway is closely monitoring the situation surrounding Leonardo. The country is considering purchasing British-made anti-submarine helicopters for its new frigates.