Defence giant Leonardo has warned that the future of its UK helicopter factory could be at risk over frustration with a delayed contract decision.
It is waiting for the Ministry of Defence to approve a £1billion contract to make a medium helicopter to replace Britain’s ageing Puma fleet – even though it is the sole bidder after rivals pulled out in 2024.
In a private letter to Defence Secretary John Healey, Leonardo chief executive Roberto Cingolani even warned that the Italian group could scrap all investment in Britain, it was reported.
Awaiting takeoff: Leonardo has warned that the future of its UK helicopter factory could be at risk over frustration with a delayed contract decision
Cingolani reportedly told Mr Healey that the deal was a ‘cornerstone’ of its UK strategy. Leonardo, which has 3,000 staff at its factory in Yeovil, Somerset, declined to comment.
The Ministry of Defence said a final procurement decision would be made ‘in due course’.
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