Rheinmetall and Bulgaria have signed a 1-billion-euro ($1.1 billion) agreement to establish a new ammunition production facility that will supply 155-millimeter shells and gunpowder, reinforcing Europe’s defense manufacturing capacity amid rising security tensions.
The plant will be located on a 100-hectare site near Sopot and is expected to create around 1,000 local jobs.
Construction will span about 14 months, with shell casing output planned for 2027 and explosive production following in 2028.
At full capacity, the site will turn out 100,000 shells, propellant for 150,000 rounds, and roughly 1,300 tonnes of gunpowder each year.
The partnership combines Rheinmetall’s expertise with that of Bulgaria’s state enterprise VMZ, forming a joint venture in which Rheinmetall owns 51% and VMZ 49%.
Bulgaria’s investment is supported through the European SAFE loan mechanism, part of the EU’s initiative to bolster strategic defense production across the continent.
