£1B helicopter deal secures 3,300 British jobs and unlocks up to £15 billion in UK exports

Yeovil-based Leonardo UK has been selected for a £1 billion ($1.88 billion) UK Ministry of Defence contract for New Medium Helicopters (NMH). The contract, for 23 AW149 helicopters, makes Yeovil the Italian company’s company’s global centre for military helicopter production and exports, which could be worth up to £15 billion ($28.3 billion) over the next decade.

The NMH could also work alongside uncrewed aircraft; the deal also makes Yeovil the centre of excellence for military helicopter autonomy as the UK MoD invests further in Proteus, the UK’s first autonomous Uncrewed Air System (UAS) which is built by Leonardo and recently undertook its first flight. The development of uncrewed and autonomous technology in the UK is at the heart of the government’s Defence Industrial Strategy, says the UK MoD in a media release, and could offer the opportunity to make platforms such as NMH optionally-crewed.

“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,” said John Healey, the UK Secretary of State for Defence. “It backs British jobs and security today and makes the UK a pace-setter in uncrewed, technology and innovation for tomorrow.”

The contract paves the path for future military international orders to be built in the UK, says the UK MoD, with an increased workshare for the UK above 40%. There are around 20 countries with requirements for new medium-lift helicopters, it adds, and together with Leonardo’s other helicopters, international orders for NMH could generate over £15 billion in exports over the next 10 years.

“We welcome the decision to award the New Medium Helicopter contract to supply medium lift helicopters to the Ministry of Defence, as well as the continued investment in Proteus – our autonomous rotary wing uncrewed air system in development with the Royal Navy,” said Nigel Colman, Leonardo’s Managing Director of Helicopters UK.

The Government’s procurement of the AW149, as well as the continued investment in autonomy, will support more than 3,300 jobs in Yeovil, the Home of British Helicopters, as well as 12,000 across the UK supply chain. With a UK supply chain of nearly 70 companies, the program also secures sovereign defence skills and expertise for decades to come, says the UK MoD.

The new deal delivers on the Strategic Defence Review and Defence Industrial Strategy, says the UK MoD, improving warfighting readiness, strengthening the UK’s defence industrial base, and making defence an engine for growth.