LONDON, March 2 — The British government announced Monday it had agreed a £1 billion (US$1.3 billion; RM525.30) contract with the UK arm of Italian defence company Leonardo to build a new fleet of military helicopters.
The deal for 23 so-called medium-lift helicopters will help secure 3,300 jobs at Britain’s last military helicopter manufacturing site in Yeovil, southwest England, the Ministry of Defence said.
Leonardo had signalled the facility could face closure if the contract did not proceed, also endangering a UK supply chain comprising dozens of companies.
Defence Secretary John Healey said it will make the Yeovil site – which dates back to 1915 and World War I aerial manufacturing – “the proud home of Leonardo’s global military helicopter production”.
The ministry claimed the deal had the potential to be worth £15 billion (RM78.79 billion) over the next decade, noting around 20 countries had “requirements for new medium-lift helicopters” in the coming years.
It also said the commitment helps UK efforts to become a leader for autonomous helicopter systems, noting Leonardo was also building Britain’s first autonomous uncrewed air system, known as Proteus.
“This defence investment works for Britain on every level,” Healey said in a statement accompanying the agreement announcement.
“It strengthens our armed Forces, secures thousands of skilled British jobs, and sets up big export opportunities,” he added, calling it “a major vote of confidence” in Britain.
The Unite union has said the deal represents a “tremendous victory” for workers and the wider sector, following reports Friday the agreement had been sealed.
Leonardo was the only bidder left in the running for the much-delayed contract, after Airbus and Lockheed Martin both withdrew, according to press reports.
Nato allies have committed to spend five percent of annual output on defence by 2035 as European members also face pressure from US President Donald Trump to bolster defence spending.
UK Prime Minister Keir Starmer said earlier this month that Britain needed to “go faster” in increasing military spending. — AFP
Malay Mail – Money
