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Defence contractor Leonardo will this week submit its proposal for a £1bn deal to replace the UK’s ageing fleet of Puma helicopters.
The Italian-owned company is competing with rivals Airbus and US firm Lockheed Martin for the defence ministry contract, with the winner expected to be announced next year.
Despite pressure on the Government to boost defence spending, there are fears the deal could be scrapped following Labour’s defence review. One industry source said it was an “obvious candidate”.
The Puma fleet’s service life could extend into the 2030s. Leonardo will be defending its Yeovil-built AW149 helicopters at this week’s Farnborough Airshow.
Yeovil, where helicopters have been manufactured for 80 years, employs more than 3,000 people and already sells the AW149 to Poland and other countries.
Leonardo is competing with rivals Airbus and Lockheed Martin for the Ministry of Defence contract to replace the Puma
Airbus and Lockheed would also build the helicopters in the UK if they win the contract, and Airbus would build a facility in Wales where it already makes wings.
The helicopters replace the Pumas, which date back to the 1970s.
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