Bulgaria and Germany are set to launch £1 billion ($1.1 billion) in joint defense industry projects, including new facilities in Bulgaria for the production of artillery shells, gunpowder, NATO-standard ammunition, and long-range weapons.
The initiative is being driven by Bulgaria’s Citizens for European Development (GERB) party in partnership with Rheinmetall, the Düsseldorf-based defense company.
Talks began in March 2025 and gained momentum in April, highlighting deepening defense cooperation between the two nations. Contracts are expected to be finalized within three weeks, with funding already secured by Sofia and the European Commission notified.
Plans also include establishing a drone manufacturing plant, with Bulgaria’s state-owned Sopot armaments producer anticipated to play a key role.
The joint projects aim to strengthen Bulgaria’s position within NATO and bolster European defense capabilities, while creating thousands of jobs and driving the Balkan state’s economic growth.
Rheinmetall expects the venture to generate €1 billion in annual turnover, contributing tax revenues and enhancing Bulgaria’s defense industry standing.
