Bulgaria Signs 1B Euro Deal with Rheinmetall for Ammunition Plant

Bulgaria and the German defense company Rheinmetall have officially launched a joint project to build a modern facility for producing gunpowder and 155-millimeter NATO-standard artillery shells, marking one of Bulgaria's largest recent industrial investments valued at nearly 1 billion leva (about 500,000 euros). The plant will be a joint venture between Rheinmetall, holding a 51% share, and Bulgaria's state-owned Vazov Machine-Building Plants (VMZ) in Sopot, with the Bulgarian government financing its participation through a European loan. The facility aims to be operational within two years and will create roughly 1,000 highly skilled jobs, contributing significantly to Bulgaria's economic and defense development. The project is strategically important not only for Bulgaria but for the entire European Union and NATO as it seeks to strengthen European defense capabilities and strategic autonomy amid shifting geopolitical challenges. High-level officials including Bulgarian Prime Minister Rosen Zhelyazkov, Rheinmetall CEO Armin Papperger, and VMZ Executive Director Ivan Getsov attended the signing ceremony, underscoring the deal's significance. This initiative also aims to restore Bulgaria's defense capacity and enhance its role in the European defense industry.