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Leonardo UK selected for £1 billion helicopter contract

Posted on 18 Mar 2026. Edited by: Colin Granger. Read 190 times.
Leonardo UK selected for £1 billion helicopter contractThousands of skilled British jobs have been secured with a major helicopter deal that will boost the UK Armed Forces’ battlefield kit and make Britain Leonardo’s global centre for military helicopter production and exports. The £1 billion deal will also make Yeovil the centre of excellence for military helicopter autonomy, as the Ministry of Defence invests further in Proteus — the UK’s first autonomous uncrewed air system, which is built by Leonardo and recently undertook its first flight.

The new deal secured by the Government with Leonardo will provide the UK Armed Forces with 23 new medium-lift helicopters (based on the AW149 platform), which could work alongside uncrewed aircraft and pave the way for future military international orders to be built in the UK — with an increased workshare for the UK above 40%. There are around 20 countries with requirements for new medium-lift helicopters; and together with Leonardo’s other helicopters, international orders for NMH could generate over £15 billion in exports over the next 10 years. 

The agreement secures the future of the UK’s sovereign helicopter production and Leonardo’s facility in Yeovil, Somerset, sustaining 3,300 jobs. This includes 650 people working directly on NMH and more involved with autonomous systems and providing ongoing supports and manufacture of the Merlin and Wildcat helicopter fleets. With a UK supply chain of nearly 70 companies, the programme ‘also secures sovereign defence skills and expertise for decades to come’.

Thousands of jobs secured

Defence Secretary John Healey MP said: “This defence investment works for Britain on every level. It strengthens our Armed Forces, secures thousands of skilled British jobs, and sets up big export opportunities. It is a major vote of confidence in British industry, British workers and British innovation. This Government’s broad deal makes Yeovil the proud home of Leonardo’s global military helicopter production, building world-class helicopters for our forces and allies around the world for many years to come. It backs British jobs and security today and makes the UK a pacesetter in uncrewed, technology and innovation for tomorrow.

Chancellor Rachel Reeves said: “The upgraded deal is the result of the government’s commitment to a new partnership and new ways of working with industry as set out in the Strategic Defence Review and Defence Industrial Strategy – and makes the MoD’s relationship with Leonardo even stronger. The partnership will see the UK lead the world in helicopter innovation and autonomy, with Leonardo setting up Yeovil as a future centre of excellence for autonomous helicopters. Proteus, which undertook its first flight at the end of January, is being developed to conduct a range of missions, including aspects of anti-submarine warfare.”

The award of the contract to build 23 new medium helicopters (NMH) to Leonardo in Yeovil has been welcomed by Councillor Mike Rigby, Somerset Council’s lead member for Economic Development, Planning and Assets. He said: “The £1 billion contract looks set to create hundreds more jobs at the site, as well as safeguard 3,300 existing jobs and around 12,000 in the wider supply chain across the UK. Somerset Council, working with Yeovil MP Adam Dance, has lobbied hard to support the bid by Leonardo for the order.”