Defence giant threatens to scrap all UK investment

Defence affairs - Matt Oliver

 Industry Editor. Szu Ping Chan Economics Editor

The boss of defence giant Leonardo has threatened to scrap all investment in Britain following a row over a long-delayed military helicopter contract.

Roberto Cingolani, chief executive of the Italian group, warned that a failure to secure new work for his company’s Somerset factory would put the loss-making site at risk of closure and force a rethink of Leonardo’s entire UK presence.

This could include halting investment in other facilities focused on radar and electronic warfare systems that are spread across the regions.

The warning by Leonardo, sent in a private letter to John Healey, the Defence Secretary, is the result of growing frustration at the lack of major contracts being awarded to the defence industry.

Leonardo has been the sole bidder for the £1bn new medium helicopter (NMH) contract since summer 2024, when rivals pulled out.

However, the company is still waiting for a final decision from the Ministry of Defence nearly a year and a half later, despite warnings that more than 10,000 British jobs are on the line.

The delay has emerged despite ministers pledging to boost defence spending in light of the increased threat from Russia.

In his letter to the Defence Secretary, seen by The Telegraph, Mr Cingolani described the NMH contract as “a cornerstone” of Leonardo’s UK strategy.

He added: “Any delay or cancellation in the programme award ... would force a reevaluation of Leonardo’s UK presence, including investment in electronics and cyber security divisions.”