UK awards £165m contract extension to Leonardo for Merlin Helicopter maintenance

The Italian defence company Leonardo has been awarded a £165 million (US$213 million) contract extension by the British government to continue maintaining the Royal Navy’s fleet of 54 Merlin helicopters, according to The Guardian. The deal underscores the UK’s commitment to increasing defence spending amid growing security concerns.

Keir Starmer’s government has pledged to raise military expenditure to 2.5% of gross domestic product by 2027. Officials stated that the contract extension with Leonardo would enhance national security while also supporting jobs across the country.

Leonardo confirmed that the extension will help sustain around 1,000 jobs, including 200 positions at its Yeovil factory in Somerset and a further 800 roles throughout the wider UK supply chain. The agreement will also support employment at the Royal Navy’s airbase at Culdrose in Cornwall.

The Ministry of Defence highlighted the strategic importance of the Merlin helicopters, describing them as “submarine hunters” capable of intercepting pirates and drug traffickers, conducting search and rescue missions, and transporting essential personnel and supplies.

Maria Eagle, Minister for Defence Procurement and Industry, emphasised the significance of the investment, stating: “This investment demonstrates our unwavering commitment to maintaining cutting-edge defence capabilities that keep us safe, while utilising defence as an engine for economic growth.”

Nigel Colman, Managing Director of Leonardo Helicopters UK, added: “Working closely with the Ministry of Defence and Royal Navy, we’re keeping the Merlin fleet supported and available, so it’s ready to fly whenever and wherever it’s called upon.”

The UK government confirmed that Leonardo remains the prime contractor for Merlin helicopter maintenance, with Lockheed Martin and Serco appointed as subcontractors.