Agusta Westland in Yeovil has been awarded a £470m contract for the maintenance and support of Sea King Helicopters.
The contract, from the Ministry of Defence, means Agusta Westland will be responsible for on-site support to Search and Rescue sites.
Staff at RNAS Yeovilton will take on component maintenance as part of the five-year contract.
Sea King helicopters are a key workhorse of the UK Armed Forces.
Minister for Defence Equipment and Support Baroness Taylor said: ""This contract provides a much more efficient way of doing business and savings of over £90m in the next 12 years are expected, representing good value for British taxpayers.
"Most importantly there will be no reduction in performance or service provided."
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