A £1bn contract will see Leonardo build 23 new military helicopters for the UK Ministry of Defence (MoD) at its facility in Yeovil, Somerset.

Under the new medium helicopter (NMH) contract, the Italian-owned aerospace firm will build and deliver 23 latest-generation AW149 helicopters. Known as the ‘Home of British Helicopters’, the Yeovil site has been in operation for more than 80 years, with manufacturing dating back to the Second World War. 

With 3,300 people employed at the site, securing the competitive NMH government contract is seen as vital to safeguarding thousands of British jobs at the site as well as across the wider supply chain. Leonardo’s chief executive Roberto Cingolani said late last year that Leonardo “cannot subsidise Yeovil forever”, implying that the factory’s future could be at risk if it was not awarded the contract.

The government said the deal would secure existing jobs but also create up to 650 new ones, boosting the local workforce.

The new deal will not only provide the UK armed forces with 23 new AW149 helicopters but will also pave the way for future military international orders to be built in the UK. According to the government, this could generate more than £15bn in exports over the next 10 years.

The deal will also see Yeovil become the centre of excellence for military helicopter autonomy, as the MoD invests further in Proteus, the UK’s first autonomous uncrewed air system built by Leonardo. Proteus, which undertook its first flight at the end of January, is being developed to conduct a range of missions, including anti-submarine warfare.  

Chancellor Rachel Reeves said the deal “positions the UK and its allies at the forefront of the next generation of defence and autonomous systems”.

Defence secretary John Healey hailed it as a “major vote of confidence in British industry, British workers and British innovation”.  

Cingolani welcomed the government’s decision to award the contract to Leonardo, pointing out that “our industrial base in the UK is core to our international strategy and competitiveness, now and in the future. This new programme will translate into significant benefits for the country.”

Medium helicopters are vital to the MoD because of their ability to operate in all environments, supporting military missions and providing humanitarian assistance and disaster relief.

The AW149 NMH contract will deliver multiple rotary wing requirements using a single aircraft-type. This means that the platform will be able to undertake defence tasks previously carried out by three different aircraft types. 

Gian Piero Cutillo, managing director of Leonardo Helicopters, said: “The NMH contract award opens a new chapter for our Yeovil site and its historical contribution to the UK armed forces. The AW149’s modern design, advanced technology and high performance will deliver outstanding capabilities, allowing the operator to enter a new era in terms of mission effectiveness, interoperability, supportability and growth potential to face the challenges of modern and evolving scenarios.”