GKN, the fuselage company for AW159 Wild Cat helicopter, warns of 230 job losses

Augusta Factory in Wales — Leonardo’ s helocopter campus

British global engineering firm GKN, who help thousands of aircrafts to fly, sent 230 workers at its Somerset factory home early, and told them to expect significant job losses. Hundreds of highly skilled manufacturing jobs producing Wild Cat helicopters for Royal Navy In Yeovil, Somerset could be sent abroad in Italy.

There is real risk of the factory even be shut after Leoardo-Finmecanica, owner of Agusta West, decided to take in-house the fuselage work done by GKN on the future AW159 Wild Cat Military helicopter, and there could be a real fear that the contract could be transferred to Leonardo’s Italian helicopter factories.

The UK’s decision in July 2016 to buy 50 Apache attack helicopters “off the shelf” from American Boeing – rather than European Leonardo – for the British Army in a deal worth £1.7bn triggered an outcry over the impact on Britain’s last remaining helicopter manufacturer, and warning from Sir Gerald Howarth former defense minister about Britain losing its sovereign capability in military helicopters if the contract was given to Boeing.

The work done by GKN on the Wild Cat Helicopter amounted to £10m, about one third of the £30m revenues generated at the site.

The company issued a statement saying “ The removal of a significant part of GKN Yeovil business puts at risk the long-term viability of our Yeovil site, which is situated inside the Leonardo Helicopter campus. Having completed a thorough assessment of the business, including our ongoing order book, capabilities and cost base, we have regrettably concluded that GKN Yeovil, is no longer a sustainable business and will have to be significantly downsized or fully closed.”

Leonardo-Finmeccanica, which took full ownership of Westland Helicopters in 2004, three years after its merger with Italy’s Agusta, confirmed the decision to take work in-house.

The Helicopter industry has been hit by the downturn in the oil and gas sector on the civil side and by reduced military spending.