site.btaUPDATED Bulgaria, Rheinmetall to Equally Share Investment in New Ammunition Plants, Says Defence Committee Chair

Bulgaria and German arms manufacturer Rheinmetall will equally share the investment in the upcoming construction of ammunition plants on Bulgarian territory, the Chair of the parliamentary Defence Committee Hristo Gadzhev told journalists on Wednesday.

On April 16, GERB leader Boyko Borissov told reporters in Parliament that he has sent a detailed investment proposal to Prime Minister Rosen Zhelyazkov regarding the construction of a gunpowder production plant in partnership with Rheinmetall.

Gadzhev and President Rumen Radev are on a two-day visit to Unterluess, Germany, where Rheinmetall officially opened a new high-tech ammunition plant.

Gadzhev said that he visited the facility to witness first-hand how the large-scale plant in Unterluess was constructed so fast. “Our ambition is to build such a plant in Bulgaria within a similarly short timeframe,” he added.

Gadzhev reported that the Bulgarian government submitted a financing request in July under the European Union's SAFE security mechanism, which involves access to EU-backed loan instruments. “Bulgaria is one of the few countries that, in addition to purchasing weapons, is also acquiring production capacity. We will establish local production using a loan that will not burden the national budget. This is a very sound decision by the government and shows that considerable thought and planning went into it,” Gadzhev said.

When asked whether the government and the ruling majority worked jointly with the President regarding the opening of the new Rheinmetall production lines in Bulgaria, Gadzhev said that even after a successful international meeting, investment cannot proceed without follow-up efforts on the ground, direct engagement, and intergovernmental coordination. “The government did its part,” he said. He cited Rheinmetall CEO Armin Papperger, who remarked: “If it hadn’t been for Mr Borissov’s personal commitment, this investment would not have happened.”

In response to allegations that he was sabotaging the government, Radev told reporters on Monday this was not the case, as he was the one who persuaded Rheinmetall to come to Bulgaria and invest significant resources in the country.

Later Monday, Borissov reported after a meeting with Papperger that gunpowder and NATO-calibre 155 mm artillery rounds will be manufactured in Bulgaria under two joint-venture agreements with Rheinmetall. He specified: "The gunpowder factory will be as big as two German factories here, the largest in Europe. This is the scarcest commodity at the moment, and I am extremely grateful to Mr Papperger for choosing the grounds of the Vazovski Mashinostroiteleni Zavodi for this huge factory."