Thousands of jobs have been secured by the New Medium Helicopter (NMH) deal, which will bolster UK Armed Forces’ battlefield capability and make the UK Leonardo’s global centre for military helicopter production and exports.

The £1 billion contract awarded by DE&S will also make Yeovil the centre of excellence for military helicopter autonomy as further investment is made in Leonardo’s Proteus – the UK’s first truly autonomous uncrewed air system which recently undertook its first flight.

The NMH programme will deliver 23 new medium-lift helicopters, which could work alongside uncrewed aircraft, and paves the way for future export orders to be built in the UK with an increased domestic workshare above 40%. International orders for NMH and Leonardo’s other helicopters could generate over £15 billion in exports over the next decade.

Defence Secretary John Healey MP said: “This defence investment works for Britain on every level. It strengthens our Armed Forces, secures thousands of skilled British jobs, and sets up big export opportunities.

“It is a major vote of confidence in British industry, British workers and British innovation.   This Government’s broad deal makes Yeovil the proud home of Leonardo’s global military helicopter production, building world-class helicopters for our forces and allies around the world for many years to come.

“It backs British jobs and security today and makes the UK a pace-setter in uncrewed, technology and innovation for tomorrow.”

The agreement secures the future of sovereign helicopter production and of Leonardo’s facility in Yeovil, sustaining 3,300 jobs. This includes 650 people working directly on NMH plus more involved with autonomous systems and providing ongoing support to the Merlin and Wildcat fleets. With a UK supply chain of nearly 70 companies, NMH also secures sovereign defence skills and expertise for decades to come.

National Armaments Director Rupert Pearce said: “In an increasingly volatile and unpredictable world, characterised by emerging threats and shifting geopolitical dynamics, the importance of a robust and agile Defence industrial capability cannot be overstated to preserve operational advantage. I am therefore delighted by the news of the New Medium Helicopter (NMH) approval and the deal brokered by the NAD Group with Leonardo.

“In addition to delivering a versatile and resilient military capability, this £1 billion investment secures thousands of jobs while strengthening the UK’s helicopter design, manufacturing, and support base for decades to come, and enables a potential £15bn of export opportunities over 10 years. These benefits are testament to Defence Reform in action and the work of the NAD Group.”

The NMH will deliver multiple rotary wing requirements using a single aircraft-type and will be capable of operating in all environments in support of defence operations around the globe, from warfighting to humanitarian assistance and disaster relief efforts.

This means that the platform will be able to undertake defence tasks that were previously delivered by three different aircraft types, improving efficiency and operational flexibility now and in the future.

The agreement paves the path for future export orders of the AW149 helicopter to be built in the UK, significantly expanding the UK’s workshare for the aircraft and growing the local workforce in the South West, with a potential to sustain 3,900 jobs – a 20% increase.

Leonardo also plans to set up Yeovil as a future centre of excellence for autonomous helicopters. Proteus, which undertook its first flight at the end of January, has demonstrated it can conduct a range of missions including anti-submarine warfare.

The development of uncrewed and autonomous technology in the UK is at the heart of the Government’s Defence Industrial Strategy and could offer the opportunity to make platforms such as NMH optionally crewed in future.

Nigel Colman, Managing Director of Helicopters UK, Leonardo said: “We welcome the decision to award the New Medium Helicopter contract to supply medium-lift helicopters to the Ministry of Defence, as well as the continued investment in Proteus – our autonomous rotary wing uncrewed air system in development with the Royal Navy.

“Leonardo is committed to providing the UK Armed Forces with a world-class medium-lift helicopter based on our leading AW149 platform that will serve our military personnel for many years to come.”