Bulgaria has signed an agreement with Germany’s Rheinmetall to construct a large-scale ammunition manufacturing facility worth over one billion euros. The project, situated in the Sopot area, will cover 100 hectares and generate about 1,000 jobs upon completion. The new complex will include production lines for artillery shells, propellant charges, and gunpowder, significantly increasing Europe’s ammunition capacity. Development work will last roughly 14 months, after which the plant will begin operations in 2027 with a gradual ramp-up to full-scale output by 2028. The facility is projected to manufacture 100,000 shells and charges for 150,000 additional rounds each year, along with more than 1,300 tonnes of gunpowder. The initiative is a joint venture between Rheinmetall, which owns a 51 percent share, and Bulgaria’s state firm VMZ, which retains 49 percent. Bulgaria’s financial contribution will be supported through the European SAFE defense modernization mechanism. This project comes as European nations work to expand munitions supplies and reduce dependency on external sources. Officials say it marks a major step in reinforcing Europe’s strategic readiness and ensuring steady ammunition production for future defense needs.





