site.btaBulgaria, Rheinmetall to Officially Launch Gunpowder Plant Project on Tuesday

The Bulgarian State and the German automotive and arms manufacturer Rheinmetall will announce the launch of their project to build a gunpowder and ammunition plant on Tuesday at an official ceremony, the Government press office said on Monday. The investment, worth nearly BGN 1 billion, is among the most significant in recent years and represents a key step in the modernization of Bulgaria’s defence industry.

The innovative plant for the production of gunpowder, 155-mm artillery shells, and modular charge systems will be implemented through a joint venture between Rheinmetall and the VMZ ordnance plant in Sopot, under a 51:49 partnership.

“The project is of strategic importance not only for Bulgaria but for the whole of Europe,” the Government said. It described the initiative as “part of the European Union and NATO’s efforts to strengthen Europe’s defence capabilities and strategic autonomy in the context of the changed geopolitical environment.”

According to the Government, economic growth, the development of next-generation production capacities, and nearly 1,000 new highly qualified jobs are only some of the benefits for Bulgaria from the project’s implementation. The country expects that with the construction of the plant, Bulgaria will restore a key element of its defence capacity and strengthen its position in the European defence industry.

The agreement will be signed by Rheinmetall CEO Armin Papperger and the company’s Weapons and Ammunition Department Head Roman Kohne. On the Bulgarian side, the contract will be signed by VMZ Executive Director Ivan Getsov. Prime Minister Rosen Zhelyazkov will attend the ceremony.