Bulgaria and Rheinmetall Sign Strategic Deal to Build Gunpowder and Ammunition Factory

The Bulgarian state and the German technology group Rheinmetall are set to announce the launch of a project to build a gunpowder and munitions factory at an official ceremony at the Council of Ministers tomorrow, October 27.

The project is of strategic significance not only for Bulgaria but for Europe as a whole.

The investment, totalling nearly BGN 1 billion, is among the most significant in recent years and represents a key step in modernising Bulgaria’s defence industry.

It also forms part of broader efforts by the European Union and NATO to strengthen Europe’s defence capabilities and strategic autonomy in the context of a changing geopolitical environment.

Economic growth, the development of next-generation manufacturing facilities, and nearly 1,000 new highly skilled jobs are just some of the benefits Bulgaria will gain from the project. The construction of the factory will restore a key element of the country’s defence capacity and strengthen its position within the European defence industry.

The innovative facility, which will produce gunpowder, 155mm artillery shells, and modular charge systems, will be implemented through a joint venture between Rheinmetall and VMZ-Sopot.

The contract will be signed on behalf of Rheinmetall by CEO Armin Papperger and the company’s Head of Weapons and Ammunition, Roman Köhne.

From the Bulgarian side, the agreement will be signed by Vazovski Machine-Building Plants (VMZ) CEO Ivan Getsov.

Prime Minister Rosen Zhelyazkov will also attend the ceremony.