The agreement secures 3,300 jobs at Leonardo’s Yeovil, Somerset facility and across the wider program, including 650 roles directly linked to NMH. With a UK supply chain involving nearly 70 companies, the program is expected to sustain sovereign defence skills and expertise for decades.
The government stated that the upgraded deal makes Yeovil Leonardo’s global center for military helicopter production and exports. International orders for military helicopters built in Yeovil could generate more than £15 billion in exports over the next 10 years, with around 20 countries currently seeking new medium-lift helicopters.
British industry participation in the contract will exceed 40 percent of its value, and future export orders of the AW149 will be built in the United Kingdom. The agreement could expand the local workforce in the South West to sustain up to 3,900 jobs, representing a 20 percent increase.
The helicopters will complement the heavy Boeing CH-47 Chinook fleet, which forms the backbone of the British Armed Forces’ rotary-wing aviation. They will also replace the retired Westland Puma HC.2 and consolidate roles previously carried out by three different aircraft types into a single platform.
The AW149 NMH is designed to operate in all environments, from high-intensity warfighting to humanitarian assistance and disaster relief missions. The Ministry of Defence noted that recent conflict in Ukraine has underlined the continued importance of helicopters for transporting forces, equipment, and capabilities in complex environments.
The deal also strengthens the UK’s position in autonomous aviation technology. Yeovil will become a center of excellence for helicopter autonomy as the Ministry of Defence continues investing in Proteus, the UK’s first autonomous uncrewed air system built by Leonardo, which recently completed its first flight and has demonstrated anti-submarine warfare capabilities.
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 pace-setter in uncrewed, technology and innovation for tomorrow.”
Chancellor Rachel Reeves said: “In an uncertain world we are backing Britain’s world class defence sector to both keep Britain safe and drive economic growth.
This historic partnership not only supports British jobs and security today, but positions the UK and its allies at the forefront of the next generation of defence and autonomous systems tomorrow.”
Nigel Colman, Managing Director of Helicopters UK at Leonardo, said: “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.
Leonardo is committed to providing the UK Armed Forces with a world-class medium lift helicopter based on our leading AW149 platform that will serve our military personnel for many years to come.
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.”
The agreement aligns with the Strategic Defence Review and the Defence Industrial Strategy, reinforcing defence as a driver of economic growth. It is backed by the largest sustained increase in UK defence spending since the end of the Cold War, reaching 2.6 percent of GDP from 2027, with £270 billion allocated during this Parliament.
