Thousands of Manufacturing Jobs Hang in the Balance as UK's Helicopter Factory Teeters on Brink of Collapse.
The future of the UK's last military helicopter factory hangs precariously in the balance, with around 3,000 manufacturing jobs at risk unless a Β£1 billion order is secured from the Ministry of Defence. The Italian-owned Leonardo Helicopters has warned that failure to place an order by the end of March could lead to the closure of its Yeovil facility, sending shockwaves through the community.
Industry insiders say that the company's bid for the UK's "new medium helicopter" contract was delayed due to a lack of communication from the MoD, putting pressure on Leonardo to meet the contract's deadlines. The bid's "best and final offer" expires in March, with one source suggesting that the company needs to be informed of its status by January if it is to avoid having to restart the whole process.
The delay has sparked fears among skilled workers at Leonardo Helicopters that their jobs will be at risk unless a deal is secured. In November, the company's CEO, Roberto Cingolani, warned that any delays or cancellations in the programme would force him to reevaluate his UK presence and investment plans.
Meanwhile, the MoD has pledged to boost defence spending as the threat from Russia continues to escalate, with the UK defence budget set to rise to record levels this parliament. However, critics argue that the government's failure to deliver on promised defence investment plans is leaving the industry in limbo.
"This uncertainty must end by confirming the order for medium-lift helicopters," said Sharon Graham, general secretary of the Unite union. "Leonardo workers are looking over their shoulders wondering where the next order will come from while the government dithers and delays."
The future of the UK's last military helicopter factory hangs precariously in the balance, with around 3,000 manufacturing jobs at risk unless a Β£1 billion order is secured from the Ministry of Defence. The Italian-owned Leonardo Helicopters has warned that failure to place an order by the end of March could lead to the closure of its Yeovil facility, sending shockwaves through the community.
Industry insiders say that the company's bid for the UK's "new medium helicopter" contract was delayed due to a lack of communication from the MoD, putting pressure on Leonardo to meet the contract's deadlines. The bid's "best and final offer" expires in March, with one source suggesting that the company needs to be informed of its status by January if it is to avoid having to restart the whole process.
The delay has sparked fears among skilled workers at Leonardo Helicopters that their jobs will be at risk unless a deal is secured. In November, the company's CEO, Roberto Cingolani, warned that any delays or cancellations in the programme would force him to reevaluate his UK presence and investment plans.
Meanwhile, the MoD has pledged to boost defence spending as the threat from Russia continues to escalate, with the UK defence budget set to rise to record levels this parliament. However, critics argue that the government's failure to deliver on promised defence investment plans is leaving the industry in limbo.
"This uncertainty must end by confirming the order for medium-lift helicopters," said Sharon Graham, general secretary of the Unite union. "Leonardo workers are looking over their shoulders wondering where the next order will come from while the government dithers and delays."