Helicopter firm to get £1bn boost

It is possible the first Super Lynx aircraft will be in service by 2011

Helicopter manufacturer AgustaWestland is close to winning Ministry of Defence (MoD) contracts worth more than £1bn.

The Yeovil-based company's new Future Lynx has been named by the MoD as the preferred option to form part of its future helicopter fleet.

It is also strongly placed to pick up a contract to support and maintain the armed forces' Sea King helicopters.

An MoD spokesman said negotiations continue but it was hoped contracts would be signed within six months.

This is excellent news for AgustaWestland, for the highly-skilled staff at its Yeovil plant, and for the British defence industry Geoff Hoon, Secretary of State for Defence

The MoD says the Future Lynx meets its requirements for helicopters which could be used for land reconnaissance missions and attacks on small boats.

The aircraft is the latest version of AgustaWestland's successful Lynx helicopter.

Currently, the Army has about 100 Lynx aircraft and the Royal Navy has 60.

An MoD spokesman the exact number of new helicopters supplied as part of any deal had yet to be confirmed. It is possible the first helicopters could be in service by 2011.

'Excellent news'

If AgustaWestland secures the partnering agreement with the MoD, the company would effectively take over supporting the Armed Forces' Sea King fleet from the military.

This would include managing the maintenance and the supply of parts.

Secretary of State for Defence Geoff Hoon said: "This is excellent news for AgustaWestland, for the highly-skilled staff at its Yeovil plant, and for the British defence industry."

Other aerospace companies will also benefit from the deal, the MoD said.

These include: Smiths Aerospace in Cheltenham, Gloucestershire; Thales in Taunton, Somerset, and Raynes Park, London; GD(UK) in St Leonards-on-Sea, East Sussex; and South Dorset Engineering in Weymouth.

The news comes just two months after AgustaWestland won a key deal, as part of a consortium, to supply helicopters for the US Presidential fleet.

But bosses will still press ahead with plans to make up to 700 people from the Yeovil workforce redundant.

A spokesman said the company had taken into account the fact that it may win UK government orders when deciding to cut its workforce.

About 4,000 people currently work at the Yeovil site.