Hundreds of UK jobs reportedly at risk over the MoD’s Boeing Apache deal
Hundreds of British jobs have reportedly been put at risk by a Ministry of Defence decision to award a £425m defence contract away from Somerset-based AgustaWestland.
The MoD has been widely reported as close to sign a deal for 50 brand new Apache helicopters with Boeing, to help replace the British Army's aging fleet.
The Mail on Sunday reported the decision replace the existing helicopter fleet will save the government tens of millions, while also putting up to 600 jobs at the UK firm at risk.
While the original Apaches were also bought from the US, the attack helicopters have previously been fitted out and serviced at AgustaWestland's Yeovil factory, which employs 3,700 staff.
The manufacturer, which has been owned by Italian Leonardo-Finmeccanica since 2004, has a contract to service Britain's army helicopters to 2019.
However, speaking to CityAM, Yeovil MP Marcus Fysh denied that a deal had been done.
“The decision hasn't been made yet. I know that the government is still in the assessment phase and working though things with both sides at the moment.
He added: “I don't believe there are necessarily jobs at risk. We need to wait and see what the decision is, but I hope there will be good work for Westland coming out of the process.”
An MoD Spokesperson said: "The Apache programme is currently in its assessment phase, and we expect to make a decision by summer 2016.”
An AgustaWestland spokeswoman said: “We are not aware of any decision. Certainly if this is the case it would have an impact on our production in the UK, which would not exclude consequences."