Bulgaria has partnered with German defense manufacturer Rheinmetall in a deal exceeding 1 billion euros ($1.1 billion) to construct a major production hub for gunpowder and 155-millimeter artillery shells, aimed at strengthening Europe’s ammunition supply amid ongoing regional security challenges.
The new complex will span 100 hectares (247 acres) in Bulgaria’s Sopot region and is projected to generate around 1,000 new jobs.
Infrastructure development will take roughly 14 months, with projectile casing production slated for 2027 and explosive material manufacturing beginning in 2028.
Once fully operational, the facility will produce up to 100,000 artillery shells and propellant charges for 150,000 rounds annually, along with approximately 1,300 tonnes (2.8 million pounds) of gunpowder each year.
The joint venture unites Rheinmetall and Bulgaria’s state-owned Vazovski Mashinostroitelni Zavodi (VMZ), with the German firm holding a 51% majority stake and VMZ retaining 49%.
Bulgaria is financing its contribution through a European SAFE (Security Action for Europe) loan program designed to modernize defense industrial capabilities.
