The UK’s last military helicopter factory must land a long-awaited order from the Ministry of Defence within the coming weeks to secure about 3,000 manufacturing jobs, industry sources suggest.

Skilled workers at Leonardo Helicopters – the Italian owner of the former Westland factory in Yeovil, Somerset – fear the company will follow through on threats to close the facility at the end of March, if the UK military fails to place an order for new helicopters by that time.

Leonardo was the only bidder for the UK’s £1bn “new medium helicopter” contract that was launched in February 2024, but delays in awarding the deal seem to have put the future of the factory at risk.

The bid’s “best and final offer” expires in March. One source close to the process suggested the company needed to be told it had been awarded the deal by January if it was to meet the contract’s various deadlines.

A delay until after March risks having to restart the whole process, as the price is dependent on Leonardo’s supply chain. “It’s critical at the moment,” the source said.

In November, Leonardo’s chief executive, Roberto Cingolani, told investors he was negotiating with the MoD to try “to boost the collaboration with the UK government”, while in December he wrote to the defence secretary, John Healey, and threatened to scrap all investment in Britain, in a letter first reported by the Daily Telegraph.

Cingolani described the new medium helicopter contract as “a cornerstone” of Leonardo’s UK strategy and added: “Any delay or cancellation in the programme award ... would force a reevaluation of Leonardo’s UK presence, including investment in electronics and cyber security divisions.”

The process has stalled despite ministers pledging to boost defence spending in light of the increased threat from Russia. The defence industry has become frustrated by the wait for the government’s promised defence investment plan, which was expected before Christmas.

Sharon Graham, the general secretary of the Unite union, said: “Leonardo workers in Yeovil are looking over their shoulders wondering where the next order will come from while the government dithers and delays. This uncertainty must end by confirming the order for medium-lift helicopters.”

An MoD spokesperson said: “The UK defence budget is rising to record levels as this government delivers the biggest boost to defence spending since the cold war, totalling £270bn this parliament alone.

“Demands on defence are rising, with growing Russian aggression, increasing operational requirements and preparations for a Ukraine deployment.

“We are working flat out on the defence investment plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited.”