Leonardo spends nearly £500m with UK onshore supply chain

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by Mike Stones
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Leonardo Helicopters spent nearly £500m with more than 650 suppliers linked to its UK onshore supply chain last year, says the manufacturer. The supply chain purchases reflected the growing strength of its UK-based helicopter business, which is benefiting from recent domestic and export orders, it added.

The manufacturer said in a statement: “With a strong order book for our Yeovil-based business, and as UK MOD [Ministry of Defence] and international customers’ demands for Leonardo’s helicopters and the missions they undertake evolve, having an onshore supply chain also allows resilience and flexibility in ensuring customers’ needs are met, whilst retaining high-tech UK skills, research, and intellectual property.”

Last year, Leonardo’s procurement spend around the UK, relating to helicopters produced in Yeovil, England, reached £474m with 665 firms in its UK supply chain. About 25% of the procurement spend was with more than 250 small and medium-sized enterprises (SMEs).

Nearly 40% of Leonardo’s spending was made with suppliers located in the 10% most deprived Local Authorities in England, as defined by the UK government.

Overall, Leonardo’s UK helicopter business helps sustain about 12,000 British engineering and manufacturing jobs. The manufacturer added it is one of few organisations in the world, and the only one in the UK, with an end-to-end helicopter manufacturing capability. “This means that Leonardo in Yeovil [UK] can design, develop, manufacture, test and certify helicopters, in addition to the provision of subsequent training, support, and upgrades for customers.”

Clive Higgins, chair and CEO, Leonardo UK, said: “Maintaining Leonardo’s healthy and productive relationships with all of our suppliers is critical to delivering for our customers. We have an established UK-wide supply chain that we have developed for decades, with our helicopters business supporting the UK economy through £500 million purchases. This translates into jobs and skills staying onshore and is critical for the British Armed Forces, who rely on UK industry to provide high-end capabilities for their battlefield needs.” Pictured is a Leonardo AW149 military helicopter.

 

Leonardo’s 2022 UK onshore supply chain spend – at a glance

  • Total spending £474m
  • Supply chain includes 665 firms
  • About 25% of spend made with 250 SMEs
  • Nearly 40% of suppliers located in the 10% most deprived Local Authorities in England, as defined by UK government
  • Spending helps sustain about 12,000 British engineering and manufacturing jobs.

Source: Leonardo Helicopters

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