Hopes for a new helicopter factory that could have created hundreds of jobs have been dashed.

Airbus Helicopters has withdrawn from bidding for a £1bn Ministry of Defence (MoD) contract to build a fleet of new medium-sized H175M.

The company had said it would build the aircraft at Broughton in Flintshire, where its civilian division has a wing factory.

As the deadline passed at midnight on 30 August, only one bid had been submitted to the MoD.

That was from from Italian defence firm Leonardo, which has a factory in Yeovil, Somerset.

US firm Lockheed Martin/Sikorsky also dropped out of the competition, with its offer of Black Hawk helicopters.

Airbus said in July 2022 the H175M offered a “vital replacement” for the existing Puma and Super-Puma helicopters the MoD plans to retire from service.

The MoD contract was for 40 aircraft, each able to carry more than a dozen fully equipped troops.

Airbus said two years ago the case for its H175M was “compelling”, offering the largest capacity and latest technology.

The company said there was potential to continue production at Broughton beyond the initial contract as it planned to offer the H175M for export.

Hundreds of jobs could have been created at Broughton and elsewhere in the UK supply chain.

Airbus said it had studied the negotiation invite from the UK government and had carried out a review.

The company no longer felt it was commercially viable.

It said: “We continue to believe the H175M is the right helicopter for the UK providing the best combination of cost effectiveness, capability and value to UK society, but have concluded that continued pursuit of the NMH opportunity cannot be justified.”

NMH, or New Medium Helicopter, is a military helicopter programme.

Airbus said it would continue to offer the H175M on the global market and will address “future UK military requirements as they evolve”.

Leonardo is now the only bidder.

It could be good news for its Yeovil factory, formerly the home of Westland helicopters.

The site has built helicopters for decades, including the Wessex, Sea King, Gazelle, Merlin and Lynx aircraft.