Defence contractor Leonardo will this week bid for a £1bn deal to replace the UK’s ageing Puma helicopter fleet.
The Italian company is competing with rivals Airbus and the American Lockheed Martin for the contract for the Ministry of Defence. The winner will be announced next year.
Despite pressure on the government to increase defence spending, there are concerns the deal could be scrapped following Labour’s defence review, with an industry source saying it was a “clear contender”.
The life of the Puma fleet could instead be extended into the 2030s. Leonardo will make the case for its AW149 helicopters, made in Yeovil, at this week’s Farnborough Airshow.
It employs more than 3,000 people at Yeovil, where it has been making helicopters for 80 years. It already sells the AW149 to Poland and other countries.
Making a pitch: Leonardo battles rivals Airbus and Lockheed Martin for Defense Department contract to replace Puma
Airbus and Lockheed would also produce the helicopters in the UK if they won the contract. Airbus is currently building a factory in Wales, where it already makes wings.
The helicopters replace the Pumas, which date from the 1970s.
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