India helicopter cancellation endangers UK jobs

Revenues take flight at helicopter manufacturer AgustaWestland

UK jobs may be at risk at helicopter manufacturer AgustaWestland following the cancellation of a major order by the Indian government.

The cancellation of the £466m contract was made in response to allegations of bribery and corruption at AgustaWestland’s parent company Finmeccanica.

A statement from Finmeccanica in the wake of the announcement said: “AgustaWestland is ready to take the necessary actions [in response to India’s termination] included in a mitigation plan already prepared. This plan includes a reduction to the workforce to readdress the company business model and the reallocation of existing working capital that will be reflected also on the supply chain.”

AguataWestland employs around 3,300 people at its Yeoville production site. A further 10,000 jobs in the supply chain are thought to be reliant on the site with around 650 suppliers being SMEs.