Bulgaria and Rheinmetall Sign Agreement to Build Gunpowder and Ammunition Plant

German defence giant Rheinmetall and the Bulgarian government have launched a strategic €1 billion project to build a plant for ammunition and gunpowder production. The agreement between Rheinmetall and VMZ–Sopot was signed at an official ceremony at the Council of Ministers in Sofia on October 28.

The project is considered strategically significant not only for Bulgaria but for Europe as a whole, as it aims to strengthen the EU’s defence capabilities and industrial autonomy. The contract was signed by Armin Papperger, CEO of Rheinmetall, and Roman Köhne, head of the company’s Weapons and Ammunition division. Representing Bulgaria was Ivan Getsov, CEO of VMZ–Sopot, in the presence of Prime Minister Rosen Zhelyazkov.

The investment will create over 1,000 high-skilled jobs and cover the production of gunpowder, ammunition, and mobile defence systems. Rheinmetall said that this is only the beginning of a series of investments planned for Bulgaria. Prime Minister Zhelyazkov emphasised that the project was made possible thanks to the mutual trust built during the negotiations.

Rosen Zhelyazkov, Prime Minister:
“This project would not have been possible without the synergy generated by the European Union and NATO, ensuring that Europe is better protected in the name of its citizens. It would not have been possible without its economic dimensions, which are linked not only to technology transfer, to know-how, and to the exchange of opportunities related to science, but also to all sectoral and cross-sectoral areas.

There are also social dimensions that go beyond the creation of more than 1,000 jobs — dimensions connected to highly skilled labour, education, science, and regional development. These are elements that exceed even the most reasonable expectations for this project. And above all, the investment environment rests on one key principle — trust.”

Petar Dilov, Minister of Economy:

“This is a strategic project not only for Bulgaria, but for the whole of Europe. It will enable us to build a sustainable and independent defence capability that will enhance the security of the entire region. The project forms part of the European Union’s and NATO’s collective efforts to strengthen Europe’s defence capacity and strategic autonomy in the context of the new geopolitical reality. We are laying the foundations of a partnership that unites Germany and Bulgaria.”

Armin Papperger, Chief Executive Officer of Rheinmetall:
“We will invest more than one billion euros in Bulgaria — and this is only the beginning. Rheinmetall will continue to invest further, and other European partners will also come and invest in Bulgaria. The reason for this is that we have incredibly motivated and highly educated people here, which gives us every reason to expect that Bulgaria will become a centre of excellence for the defence industry in Europe.”

photos by Dessislava Kulelieva, BNT

Rheinmetall has pledged that the factory will be built within 14 months, in line with the company’s initial commitment. Earlier in the day, before the signing of the agreement, the German delegation was welcomed at Sofia Airport by GERB leader Boyko Borissov, who had visited the company’s headquarters just over a month ago.