Bulgaria and German defense company Rheinmetall have signed a deal worth more than 1 billion euros ($1.1 billion) to build a new center that will produce gunpowder and 155-millimeter artillery shells, boosting Europe’s ammunition supply amid security tensions in the region.
The new plant will be established on a 100-hectare (247-acre) site in the Sopot region and is expected to create about 1,000 jobs.
Development of the infrastructure will run for approximately 14 months. The facility will then start making projectile casings in 2027, followed by explosive materials in 2028.
Once operational, it will produce up to 100,000 shells and propellant charges for another 150,000 rounds each year, along with roughly 1,300 tonnes (2.8 million pounds) of gunpowder.
This joint venture pairs Rheinmetall with Bulgaria’s state-owned Vazovski Mashinostroitelni Zavodi (VMZ), with the Düsseldorf-based firm holding a 51 percent stake and the Balkan counterpart retaining 49 percent.
Bulgaria is funding its share through a Security Action for Europe or “European SAFE” mechanism loan that supports defense industry upgrades.
The agreement was signed at the Council of Ministers in Sofia by Rheinmetall CEO Armin Papperger and VMZ Director Ivan Getsov, with Bulgarian Prime Minister Rosen Zhelyazkov also in attendance.
“With the signing of this contract, we mark the beginning of a strategic partnership between the Bulgarian state and the German technology concern, which will change the future of the Bulgarian defence industry,” Reuters quoted Zhelyazkov as saying.
