In a significant boost to Europe’s defense manufacturing sector, Bulgaria has partnered with Germany’s Rheinmetall to construct a €1 billion ($1.1 billion) ammunition production center in the Sopot region. The state-of-the-art facility will focus on producing 155mm artillery shells and gunpowder, reinforcing the EU’s supply chain as regional security concerns intensify.
The new plant will occupy a 100-hectare site and generate employment for around 1,000 workers. According to the project’s timeline, infrastructure construction will span 14 months, after which production will begin in phases — with shell casings set to roll out in 2027 and explosive compounds in 2028.
Once operational, the factory is expected to produce up to 100,000 artillery shells and 150,000 propellant charges annually, alongside 1,300 tonnes of gunpowder. This large-scale production capacity will significantly enhance Europe’s defense readiness, particularly in replenishing ammunition reserves amid ongoing geopolitical pressures.
The project is a joint venture between Rheinmetall and Bulgaria’s state-owned VMZ, where the German company holds a 51 percent share and VMZ owns 49 percent. The Bulgarian government is financing its investment through the European SAFE mechanism, an EU-backed program designed to strengthen the continent’s defense industry and supply resilience.
