SOFIA, Bulgaria (AP) — Bulgaria signed an agreement Tuesday with German defense company Rheinmetall to build a gunpowder and ammunition plant as part of Europe's efforts to improve its defenses following Russia's invasion of Ukraine.
The plant, which will produce gunpowder, 155mm artillery shells and modular charging systems, will be built as a joint venture between Rheinmetall and Bulgaria's largest state-owned arms factory, VMZ-Sopot.
According to officials, the plant will create about 1,000 highly skilled jobs, making it one of the largest industrial projects in Bulgaria in recent years.
The German company will own 51% of the shares of the joint venture, and Bulgaria will finance its participation through loans under the European SAFE mechanism.
Following the signing of the agreement, Rheinmetall CEO Armin Papperger said the new facility could be ready within 14 months and begin producing up to 100,000 artillery shells annually.
Bulgaria, a member of the European Union and NATO, sees the project as part of a joint effort to strengthen defense production and supply chains.
Prime Minister Rosen Zhelyazkov said the agreement was “a huge step forward in Bulgaria's industrial and defense potential.”
Bulgaria was one of the largest arms producers in the former Soviet bloc during the Cold War, specializing in small arms, ammunition and light armored vehicles. The collapse of the Warsaw Pact led to a sharp decline in the sector, forcing many state-owned factories to close.
Russia's full-scale invasion of Ukraine in February 2022 gave new impetus to Bulgaria's arms production, making it an important ammunition supplier to Kyiv.
