Agusta Westland in Yeovil has won a contract to convert 25 RAF Merlin helicopters for Royal Navy use.
Its existing contract to service the army's Apache Attack helicopters has also been renewed for another five years.
The Defence Secretary Philip Hammond announced the deal, worth seven hundred and sixty million pounds, at a visit to the Yeovil site this morning. He said workers at the plant can now have a "sense of security":
Defence Secretary Phillip Hammond has announced two new contracts at a helicopter manufacturers in Yeovil.
The contracts, with the Ministry of Defence, include one to convert 25 Merlin Helicopter for Royal Navy use.
The Merlin helicopters will be moved from RAF Benson in Oxfordshire to replace ageing Sea King aircraft at RNAS Yeovilton. The conversion will involve installing a folding rotor head and folding tail.
Yeovil Town take on Southampton this afternoon in the fourth round of the FA Cup.
It's the first time the Glovers have made it this far for nine years, and they reached this stage with a 4-0 thrashing of Leyton Orient in the third round. But they face a tough task to progress any further they travel to St Mary's.
Yeovil Town may be the only team from the region left in the the FA Cup after reaching the fourth round with a 4-0 thrashing of Leyton Orient, but they face a tough task to progress any further as they travel to St Mary's tomorrow to take on Premier League side Southampton.
Manager Gary Johnson and Midfielder Joe Edwards know it's no small challenge:
Service suspended on First Great Western trains between Castle Cary and Weymouth due to flooding at Yeovil Pen Mill.
All lines are blocked due to flooding, and flooding on the roads means the replacement road transport has also been withdrawn.
There is no estimate for when a normal service will resume.
Union leaders are seeking clarification of AgustaWestland's plans after suggestions that the company might have to shed jobs following the Indian government’s cancellation of a 12-helicopter deal at the Yeovil plant.
Unite wants to know about future plans at the Somerset plant, after the contract, worth about £455 million, was cancelled amid allegations that Indian officials were bribed to secure the deal.
“We want to hold talks with the management to seek clarification on the implications of this cancellation for employees.
“This is a dedicated and skilled workforce, and we need to get assurances about job security going into 2014. The company’s products are highly regarded internationally.
“We understand that the company has other contracts in place with the Norwegian government which is to be welcomed.”
AgustaWestland is the helicopter arm of Italian defence giant, Finmeccanica. Three of the helicopters have already been delivered to India and the remaining nine were due to be dispatched by the middle of this year.
Yeovil helicopter manufacturer AgustaWestland is hoping for arbitration after the Indian Government scrapped an order for 12 helicoptersRead the full story ›
Yeovil MP David Laws today commented on the news that the Indian Government has pulled out of a deal with AgustaWestland.
'In my view it would have been preferable to give time to establish the veracity of the allegations which have been made before taking any action.'
'AgustaWestland has over many years demonstrated its resilience, based on the outstanding quality of the helicopters which it makes. I expect the company to go on selling its products all over the world and to show that this setback can be overcome.'
India has cancelled a £464 million deal for helicopters being built at Agusta Westland in Yeovil. It follows allegations of corruption earlier this year, which the company denies. Three of the 12 AW101 helicopters ordered have already been delivered.