A major defense industry collaboration between Bulgaria and Germany worth £1 billion ($1.1 billion) is set to launch, focusing on new Bulgarian plants to produce long-range weapons, artillery shells, gunpowder, and NATO-compliant rounds. The initiative highlights a significant step in bolstering Europe’s defense supply chain.
The cooperation is being led by Bulgaria’s GERB political party and German defense contractor Rheinmetall. Discussions began in early 2025 and quickly expanded, reflecting the strengthening defense partnership between Sofia and Berlin.
The project contracts are expected to be signed within three weeks, with Bulgaria securing funding and formally updating the European Commission. Reports also suggest plans for an independent drone production facility, adding to the strategic scope of the venture.
While the final locations remain unconfirmed, industry sources point to Bulgaria’s Sopot arms plant as a likely hub. The joint program is forecast to create thousands of new jobs and enhance Bulgaria’s role within NATO and European defense frameworks. For Rheinmetall, the initiative is expected to drive €1 billion in annual revenue, reinforcing its leading role in Europe’s defense sector.
