UK's Helicopter Factory Hangs by Thread as MoD Deadline Looms
The future of around 3,000 jobs at a crucial UK military helicopter factory hangs in the balance, with industry sources warning that failure to secure a lucrative Β£1bn order within weeks could lead to its closure. Leonardo Helicopters, the Italian-owned firm behind the former Westland factory in Yeovil, Somerset, is under pressure from MoD to finalize an agreement on the "new medium helicopter" contract by March.
The bid process has been marred by delays, with some sources suggesting that the MoD's promised deadline for making a decision is now slipping further away. With just weeks left before the bid's "best and final offer" expires, Leonardo is growing increasingly desperate for clarity on whether it has won the deal. Insiders fear that if this doesn't materialize, the company will be forced to restart the entire process, which would leave its supply chain - and therefore the factory - in chaos.
In a letter to defence secretary John Healey last month, Leonardo's CEO Roberto Cingolani warned that any delay or cancellation of the contract would force a reevaluation of the company's UK strategy. The current uncertainty has already had a significant impact on workers at the Yeovil plant, who are left wondering what their future holds while the government dithers and delays.
The situation is further complicated by the lack of transparency from the MoD, which has been criticized for its failure to release details of the proposed defence investment plan. While ministers have pledged to boost defence spending in light of the increased threat from Russia, the delay in announcing a specific plan has left industry experts frustrated.
The Unite union's general secretary Sharon Graham has expressed her concerns about the future of Leonardo workers in Yeovil, warning that they must be given clarity on whether their jobs are at risk. "This uncertainty must end by confirming the order for medium-lift helicopters," she said.
Despite the pressure from industry, the MoD remains tight-lipped about its plans for the new helicopter contract. A spokesperson simply stated that the UK's defence budget is rising to record levels and that demands on defence are increasing due to growing Russian aggression. However, with just weeks left before the deadline for the bid, it remains to be seen whether Leonardo will secure the deal it so desperately needs to avoid closure.
The future of around 3,000 jobs at a crucial UK military helicopter factory hangs in the balance, with industry sources warning that failure to secure a lucrative Β£1bn order within weeks could lead to its closure. Leonardo Helicopters, the Italian-owned firm behind the former Westland factory in Yeovil, Somerset, is under pressure from MoD to finalize an agreement on the "new medium helicopter" contract by March.
The bid process has been marred by delays, with some sources suggesting that the MoD's promised deadline for making a decision is now slipping further away. With just weeks left before the bid's "best and final offer" expires, Leonardo is growing increasingly desperate for clarity on whether it has won the deal. Insiders fear that if this doesn't materialize, the company will be forced to restart the entire process, which would leave its supply chain - and therefore the factory - in chaos.
In a letter to defence secretary John Healey last month, Leonardo's CEO Roberto Cingolani warned that any delay or cancellation of the contract would force a reevaluation of the company's UK strategy. The current uncertainty has already had a significant impact on workers at the Yeovil plant, who are left wondering what their future holds while the government dithers and delays.
The situation is further complicated by the lack of transparency from the MoD, which has been criticized for its failure to release details of the proposed defence investment plan. While ministers have pledged to boost defence spending in light of the increased threat from Russia, the delay in announcing a specific plan has left industry experts frustrated.
The Unite union's general secretary Sharon Graham has expressed her concerns about the future of Leonardo workers in Yeovil, warning that they must be given clarity on whether their jobs are at risk. "This uncertainty must end by confirming the order for medium-lift helicopters," she said.
Despite the pressure from industry, the MoD remains tight-lipped about its plans for the new helicopter contract. A spokesperson simply stated that the UK's defence budget is rising to record levels and that demands on defence are increasing due to growing Russian aggression. However, with just weeks left before the deadline for the bid, it remains to be seen whether Leonardo will secure the deal it so desperately needs to avoid closure.