site.btaEconomy Minister Proposes VMZ–Rheinmetall Joint Venture for 155 mm Ammunition Plant

Minister of Economy and Industry Petar Dilov has presented a concept for the establishment of a joint venture between Bulgaria’s state-owned VMZ Sopot ordnance plant and the German defence company Rheinmetall to manage two facilities: one for the production of energy materials and charges, and another for the manufacturing of 155 mm ammunition. This transpires from the verbatim record of a government meeting held at the end of July.

Dilov proposes that Bulgaria apply for up to EUR 960 million in funding under the EU’s SAFE mechanism to finance the construction of both plants through the creation of the joint venture.

Minister Dilov pointed out that the benefits for Bulgaria and its defence industry will be significant. The projects will allow for the expansion and modernization of VMZ’s production capacity, strengthen supply chains, and support the development of new capabilities that meet EU and NATO interoperability requirements. The initiative is also expected to create new jobs, while the participation of the state-owned VMZ in the joint venture will generate additional revenue through local taxes and dividends, he added.

At the end of March, Rheinmetall CEO Armin Papperger visited Bulgaria to discuss specific cooperation projects with the Bulgarian defence industry and scientific community.