site.btaBulgaria, Germany's Rheinmetall Launch Joint Gunpowder and Ammunition Plant Project

The Bulgarian government and German automotive and arms manufacturer Rheinmetall officially announced on Tuesday the start of a nearly BGN 1 billion project to build a gunpowder and ammunition factory in Karlovo (Central Bulgaria). At a ceremony held at the Council of Ministers building, an agreement was signed by Rheinmetall's CEO Armin Papperger and CEO Division Weapon and Ammunition Roman Kohne and by VMZ ordnance plant Executive Director Ivan Getsov.

The ceremony was attended by Prime Minister Rosen Zhelyazkov, Deputy Prime Minister and Innovation and Growth Minister Tomislav Donchev, Economy and Industry Minister Peter Dilov, GERB Chair Boyko Borissov, and German Ambassador to Bulgaria Irene Maria Plank.

Rheinmetall CEO Armin Papperger said Bulgaria will become a centre of excellence in the defence industry for the whole of Europe. He praised the Bulgarian side for its speedy operations and for the efforts it invested to make cooperation with Rheinmetall possible. He noted that cooperation began at the Munich Security Conference that took place on February 14-15. Papperger said the project will create one of the world's most modern factories for gunpowder and ammunition.

He said the plant will have an annual production capacity of 100,000 155 mm shells that will be exported over the next 10 years. He added: "The European Union and NATO need millions of such shells, and according to our calculations, the Alliance will need about 50 million." The CEO of Rheinmetall emphasized that his company values the trust of the Bulgarian government. He added that this joint project is just the beginning and that Rheinmetall plans to make additional investments in Bulgaria.

Prime Minister Rosen Zhelyazkov said there is much work ahead, which will lead to the creation of enormous potential through the establishment of a gunpowder and ammunition factory. Speaking at the signing ceremony between VMZ Sopot and Rheinmetall, he said the agreement is a huge step forward in Bulgaria's industrial and defence capabilities. The Prime Minister said: "The signing of the agreement marks the end of a rather dynamic but productive process of preparing the shareholders' agreement and its annexes for the establishment of a joint venture between Rheinmetall and VMZ Sopot." He added that the most important thing achieved during the months of joint work is the trust and predictability between the partners.

Speaking at the signing ceremony, Economy and Industry Minister Peter Dilov said this day marks the beginning of a partnership that unites Germany's technological experience with Bulgaria's industrial potential, which will ultimately contribute to a safer future for Europe. Dilov added that this partnership will change the future of the Bulgarian defence industry. He proceeded to thank Rheinmetall CEO Papperger and his team for their high level of professionalism, consistency and dedication to the joint project. He also praised VMZ ordnance plant Executive Director Ivan Getsov for his efforts and expertise, which made this project possible. According to Dilov, this is a strategic project not only for Bulgaria but for Europe as a whole, as it will enable the development of a sustainable and independent defence capacity that will support the security of the entire region.

GERB leader Boyko Borissov and Rheinmetall CEO Armin Papperger joined Capital's Regional Defence Summit 2025 discussion on Tuesday, shortly after the signing of the EUR 1 billion contract. Borissov said at the forum: "We will build another factory for medium calibre ammunition." He added: "The world is divided at the moment. I have made my choice, GERB stands firmly with our colleagues from Western Europe and the United States, to support Ukraine." He stressed the importance of localizing production and logistics, and said Papperger's teams had visited several private arms factories in Bulgaria. "We have excellent facilities in Panagyurishte, Samokov and Stara Zagora, and they are already familiar with the full range of Rheinmetall and its subsidiaries," he said.

President Rumen Radev, who is on a visit to Riyadh, told journalists the parameters of the agreement with Rheinmetall and the way it safeguards the Bulgarian national interest are entirely the government's responsibility. Radev said: "My priority has always been the development of modern defence capabilities for the Bulgarian Armed Forces and the strengthening of a competitive Bulgarian defence industry. It was precisely with this aim that I held a meeting with Armin Papperger during the Munich Security Conference earlier this year. I persuaded him to come to Bulgaria and invited him to the President's Administration building, where we presented the full spectrum of opportunities within our defence industry. I also arranged meetings for him with the Bulgarian Government," Radev said.

The contract with Germany’s Rheinmetall and the project to build a gunpowder factory in Karlovo have not been discussed by the Municipal Council, whose meeting is scheduled for Thursday morning, Velichie MP Maria Ilieva said at a briefing in Parliament on Tuesday. She said the agreement had been signed "without any participation of the local community in Karlovo to determine whether they want such a gunpowder plant." Ilieva said the project affects the Central Balkan protected area under the Natura 2000 network. She added that 11 municipal councillors have signed a request to postpone the discussion of the matter by one month, alleging that the Council Chair was pressuring them to withdraw their signatures.

The Karlovo chapter of the Vazrazhdane party organizes a peaceful protest in front of the local municipality building on October 30 against the construction of a gunpowder factory in that town, the party said. The protest, to be held during the regular session of the Municipal Council, is prompted by a proposed change in the town's detailed territorial plan for the construction of the factory on 52 hectares of mostly woodlands. Vazrazhdane called on all residents of Karlovo Municipality and citizens from across Bulgaria to demand a public debate on the project, because the decisions to be taken will affect the health, security and future of the region. "Do not let them poison the Rose Valley!," Vazrazhdane urged. According to the party, Bulgaria needs clean air, peace and sustainable development, not a gunpowder factory.