Bulgaria has partnered with German defense manufacturer Rheinmetall to establish a new ammunition and gunpowder production complex valued at more than one billion euros. The facility will be located in the Sopot region and aims to boost Europe’s munitions output amid increasing security demands. The project will occupy 100 hectares of land and is expected to create around 1,000 jobs. Construction will take approximately 14 months, with operations beginning in stages from 2027 onward. Initially, the plant will produce projectile casings, followed by explosive materials a year later. Once fully operational, the complex will be capable of manufacturing up to 100,000 artillery shells and propellant charges for an additional 150,000 rounds annually. It will also produce over 1,300 tonnes of gunpowder per year, making it one of the largest such facilities in the region. The venture is structured as a joint partnership between Rheinmetall, holding a 51 percent stake, and Bulgaria’s state-owned Vazovski Mashinostroitelni Zavodi (VMZ), which holds 49 percent. Funding for Bulgaria’s share comes from a European SAFE loan designed to enhance the continent’s defense infrastructure. Officials stated that the new site will strengthen Europe’s defense autonomy and supply chain resilience at a time of heightened geopolitical tension. It will also reinforce Bulgaria’s position as an important contributor to regional security and industrial cooperation.
