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The United Kingdom has awarded a $1.34 billion contract to aerospace company Leonardo to build 23 AW149 medium-lift military helicopters, securing the future of Britain’s last remaining helicopter manufacturing facility and reinforcing the country’s defense industrial base.

The agreement, confirmed by the British Ministry of Defense on Monday, ends months of uncertainty surrounding the New Medium Helicopter (NMH) program and guarantees continued production at Leonardo’s Yeovil plant in southwest England.

Government officials described the deal as a major investment in national security, industrial capability, and advanced military technology, while industry leaders said the decision prevents potential closure risks that had threatened thousands of skilled jobs.

Under the agreement, the Yeovil facility will become Leonardo’s global center for military helicopter production and exports, positioning the United Kingdom as a leading hub for rotary-wing defense manufacturing.

The contract secures approximately 3,300 jobs at the site, including 650 workers directly involved in the NMH program, alongside personnel supporting existing Merlin and Wildcat helicopter fleets. An additional 12,000 jobs across the national supply chain are also supported through nearly 70 British companies linked to the program.

The Ministry of Defense stated that assigning domestic production of the AW149 helicopters to Yeovil is expected to attract future international orders, strengthening Britain’s long-term sovereign helicopter manufacturing capability.

Officials estimate that export opportunities linked to Leonardo helicopters built in the UK could generate more than $20 billion in international sales over the next decade, with roughly 20 countries currently seeking new medium-lift helicopter platforms.

Strengthening Military Capability

The AW149 helicopters will replace multiple legacy aircraft types currently used by British forces, consolidating several operational roles into a single platform.

Designed for global deployment, the helicopters can operate across combat environments, humanitarian missions, disaster relief operations, and logistics support roles. Military planners say the unified platform will improve efficiency while enhancing battlefield mobility and operational flexibility.

Recent conflicts, particularly the war in Ukraine, have reinforced the continued importance of helicopters for troop transport, equipment movement, and rapid deployment in contested environments.

The NMH fleet is also expected to operate alongside future uncrewed aircraft, reflecting a broader shift toward integrated and technology-enabled warfare systems.

Defense Secretary John Healey described the agreement as “a major vote of confidence in British industry, British workers and British innovation.” “This defense investment works for Britain on every level,” he said, adding that the deal strengthens armed forces readiness while creating long-term export opportunities.

Chancellor Rachel Reeves said the partnership demonstrates the government’s commitment to supporting the defense sector amid growing global instability.

“In an uncertain world, we are backing Britain’s world-class defense sector to both keep Britain safe and drive economic growth,” she said, calling the agreement a historic step toward positioning the UK and its allies at the forefront of next-generation defense and autonomous systems.

Autonomous and Uncrewed Technology

A central element of the agreement includes expanded investment in Leonardo’s Proteus autonomous rotary-wing platform, which recently completed its first flight.

The Ministry of Defense said the investment will transform Yeovil into a global center of excellence for military helicopter autonomy, supporting the development of optionally crewed aircraft capable of operating with advanced autonomous systems.

Proteus, the United Kingdom’s first autonomous uncrewed helicopter system, has already demonstrated capabilities across multiple mission profiles, including anti-submarine warfare operations.

Officials emphasized that autonomous and uncrewed technologies form a core pillar of the government’s Defense Industrial Strategy, aimed at ensuring future combat platforms integrate artificial intelligence, digital systems, and remote operations.

Months of Uncertainty

The contract follows prolonged delays caused by funding reviews and revised defence requirements. Leonardo had initially proposed producing 44 helicopters, but the order was reduced after budget adjustments in 2024.

Company leadership previously warned that failure to secure the contract could have placed the Yeovil facility’s future at risk, leaving thousands of workers facing uncertainty.

The finalized agreement not only preserves existing employment but could expand the workforce to approximately 3,900 jobs, a projected 20 percent increase, as export production grows.

Nigel Colman, Managing Director of Leonardo Helicopters UK, said the company remains committed to delivering “a world-class medium lift helicopter” that will serve British military personnel for decades while supporting national industrial capability.

Defense Spending and Long-Term Growth Strategy

The helicopter procurement forms part of a broader modernization effort supported by Britain’s largest sustained increase in defense spending since the end of the Cold War. Government plans aim to raise defense expenditure to 2.6 percent of GDP from 2027, totaling approximately $361 billion during the current parliamentary period.

The Ministry of Defense already spends nearly $9.4 billion annually with defense industries in southwest England alone, supporting more than 37,000 regional jobs.

Officials say the Leonardo agreement aligns defense investment with economic growth objectives, positioning advanced manufacturing, digital technologies, and autonomous systems as key drivers of long-term national competitiveness.

With production secured and export prospects expanding, the Yeovil facility, historically known as the home of British helicopter manufacturing, is now expected to play a central role in shaping the future of military aviation and autonomous rotary-wing technology worldwide.