3,000 jobs in danger until MoD indicators helicopter order, sources say

[ad_1] The UK’s final navy helicopter manufacturing unit should land a long-awaited order from the Ministry of Defence throughout the coming weeks to safe about 3,000 manufacturing jobs, trade sources counsel.

Expert staff at Leonardo Helicopters – the Italian proprietor of the previous Westland manufacturing unit in Yeovil, Somerset – worry the corporate will comply with via on threats to shut the ability on the finish of March, if the UK navy fails to put an order for brand spanking new helicopters by that point.

Leonardo was the one bidder for the UK’s £1bn “new medium helicopter” contract that was launched in February 2024, however delays in awarding the deal appear to have put the way forward for the manufacturing unit in danger.

The bid’s “finest and last provide” expires in March. One supply near the method instructed the corporate wanted to be informed it had been awarded the deal by January if it was to fulfill the contract’s numerous deadlines.

A delay till after March dangers having to restart the entire course of, as the value depends on Leonardo’s provide chain. “It’s important in the mean time,” the supply mentioned.

In November, Leonardo’s chief government, Roberto Cingolani, informed traders he was negotiating with the MoD to attempt “to spice up the collaboration with the UK authorities”, whereas in December he wrote to the defence secretary, John Healey, and threatened to scrap all funding in Britain, in a letter first reported by the Every day Telegraph.

Cingolani described the brand new medium helicopter contract as “a cornerstone” of Leonardo’s UK technique and added: “Any delay or cancellation within the programme award ... would drive a reevaluation of Leonardo’s UK presence, together with funding in electronics and cyber safety divisions.”

The method has stalled regardless of ministers pledging to spice up defence spending in gentle of the elevated menace from Russia. The defence trade has turn out to be annoyed by the watch for the federal government’s promised defence funding plan, which was anticipated earlier than Christmas.

Sharon Graham, the overall secretary of the Unite union, mentioned: “Leonardo staff in Yeovil are wanting over their shoulders questioning the place the following order will come from whereas the federal government dithers and delays. This uncertainty should finish by confirming the order for medium-lift helicopters.”

An MoD spokesperson mentioned: “The UK defence finances is rising to report ranges as this authorities delivers the largest enhance to defence spending for the reason that chilly warfare, totalling £270bn this parliament alone.

“Calls for on defence are rising, with rising Russian aggression, rising operational necessities and preparations for a Ukraine deployment.

“We're working flat out on the defence funding plan, which is able to repair the outdated, overcommitted, and underfunded defence programme we inherited.”