UK's Helicopter Factory Teeters on Brink of Collapse as MoD Deadline Looms
A critical contract that could secure 3,000 jobs in the UK is hanging by a thread, with sources warning that failure to land an order from the Ministry of Defence (MoD) within weeks will lead to the collapse of the country's last military helicopter factory. The factory, owned by Leonardo Helicopters, has been on high alert since its bid for the £1bn "new medium helicopter" contract was delayed.
The company's CEO had previously warned that any delay or cancellation of the deal would force a reevaluation of his UK presence, sparking fears that thousands of skilled workers at the Yeovil factory in Somerset will be left without a job. One industry source described the situation as "critical," saying that failure to secure the order by March would mean restarting the bidding process, which could put the entire project's supply chain at risk.
Leonardo's chief executive had previously expressed confidence in his ability to win the contract and boost collaboration with the UK government. However, the company has since threatened to pull out of Britain altogether if it doesn't receive confirmation of the order by January. The MoD has been criticized for its slow pace in awarding the deal, despite promises to boost defence spending.
The Unite union has warned that the uncertainty facing Leonardo workers will end only when a firm decision is made on the contract. "This uncertainty must end," said Sharon Graham, the general secretary of Unite. The government, meanwhile, has defended its efforts, saying that it's working flat out on a new defence investment plan to address growing demands for defence spending.
With the bid's deadline looming and no clear signs of progress, the fate of the Yeovil factory remains precarious, leaving workers and politicians alike anxiously waiting for news.
A critical contract that could secure 3,000 jobs in the UK is hanging by a thread, with sources warning that failure to land an order from the Ministry of Defence (MoD) within weeks will lead to the collapse of the country's last military helicopter factory. The factory, owned by Leonardo Helicopters, has been on high alert since its bid for the £1bn "new medium helicopter" contract was delayed.
The company's CEO had previously warned that any delay or cancellation of the deal would force a reevaluation of his UK presence, sparking fears that thousands of skilled workers at the Yeovil factory in Somerset will be left without a job. One industry source described the situation as "critical," saying that failure to secure the order by March would mean restarting the bidding process, which could put the entire project's supply chain at risk.
Leonardo's chief executive had previously expressed confidence in his ability to win the contract and boost collaboration with the UK government. However, the company has since threatened to pull out of Britain altogether if it doesn't receive confirmation of the order by January. The MoD has been criticized for its slow pace in awarding the deal, despite promises to boost defence spending.
The Unite union has warned that the uncertainty facing Leonardo workers will end only when a firm decision is made on the contract. "This uncertainty must end," said Sharon Graham, the general secretary of Unite. The government, meanwhile, has defended its efforts, saying that it's working flat out on a new defence investment plan to address growing demands for defence spending.
With the bid's deadline looming and no clear signs of progress, the fate of the Yeovil factory remains precarious, leaving workers and politicians alike anxiously waiting for news.
. The whole UK is holding its breath because 3k jobs are on the line and I don't know how many of those people will be able to find work elsewhere. It's not just about the factory, though - it's about the skillset that Leonardo has developed here and how it'll impact future projects. What if we lose that expertise? 
The government keeps saying they're working hard on a new defence plan, but I'm starting to think that 'hard work' is just a fancy way of saying 'we've got our fingers crossed 
'. We need some real answers here and fast 
. Can't believe the MoD can't even get this right... 
so like leonardo helicopters is trying to win this huge contract from the uk gov but its been delayed 4eva and now theyre literally teetering on the edge of collapse 
and its not just them, the unite union is getting all up in arms over here saying we need a firm decision ASAP 
️ i mean i get it gov has 2 make moves but cmon guys slow down 
the whole factory is on the line here 
and now the union is saying that uncertainty must end 
like whats the hurry tho? 
anyway, lets draw a diagram to show how the situation looks like:
The Data Dumper here 
? And 3,000 jobs are at stake if this contract doesn't get sorted out 
.
. Meanwhile, the UK's defence spending is expected to reach £59.2bn by 2025, up from £48.1bn in 2020 
.
. Not to mention the impact on local communities and the economy 
.
i got my fingers crossed that the uk gov actually comes through with a solid plan to boost defense spending, otherwise those 3000 jobs will be GONE 
! When things seem hopeless, that's when they have a chance to turn around. The UK government can't control everything, but it does need to step up its game and make decisions quickly. Can't we just get this sorted out already? 
Can't the government just make a decision already?! They keep saying they're working hard to boost defence spending, but if that means making sure this contract is sorted out too, then what's the hold up? It feels like everyone's just waiting around for someone else to make something happen. And if Leonardo pulls out of Britain because they can't get confirmation by January, I don't blame them. That would be a huge blow to the country.