Billion-pound helicopter deal secures 3,300 British jobs, boosts battlefield kit and unlocks up to £15 billion in UK exports

The Ministry of Defence has awarded a £1 billion contract to Leonardo UK to supply 23 new medium-lift helicopters for the UK Armed Forces, securing thousands of jobs at the company’s Yeovil site in Somerset.

The deal will see the aircraft, known as the New Medium Helicopter (NMH), built in the UK. The helicopters are expected to support a range of defence operations globally and could operate alongside uncrewed aircraft. The agreement also increases UK industrial workshare on the platform to more than 40%.

The contract secures around 3,300 jobs, including 650 roles directly linked to the NMH programme, as well as positions tied to autonomous systems development and ongoing support for the Merlin and Wildcat helicopter fleets. Leonardo’s UK supply chain includes nearly 70 companies.

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Under the agreement, Yeovil will become Leonardo’s global centre for military helicopter production and exports. The government says there are around 20 countries with potential requirements for new medium-lift helicopters, and international orders built in the UK could generate up to £15 billion in exports over the next decade.

The deal also includes further investment in Proteus, described as the UK’s first autonomous uncrewed air system developed by Leonardo. Proteus completed its first flight earlier this year and is being explored for missions including elements of anti-submarine warfare. The Ministry of Defence has indicated that future helicopter platforms could be designed to operate with optional crewed capability.

John Healey said the contract would strengthen UK defence capability while supporting domestic industry and export potential. Rachel Reeves said the partnership backed both national security and economic growth.

The agreement forms part of wider reforms set out in the Strategic Defence Review and the Defence Industrial Strategy, which aim to increase collaboration between government and industry and expand sovereign defence manufacturing capacity.

Leonardo’s Yeovil facility has long been the UK’s only onshore military helicopter manufacturing site. The new contract is expected to underpin production at the site for years to come, with potential for further workforce growth if export orders are secured.