Germany’s largest arms manufacturer, Rheinmetall, has unveiled plans to construct at least two new factories in Bulgaria, including Europe’s largest gunpowder plant, in a strategic investment exceeding €1 billion. The move underscores Rheinmetall’s commitment to strengthening European defense capabilities and supporting NATO operations.
Rheinmetall Bulgaria investment factsheet
- Company: Germany’s largest arms manufacturer, Rheinmetall, specialises in advanced defense equipment, weapons, and ammunition.
- Investment: Over €1 billion to build at least two factories in Bulgaria.
- Factories: Will produce 155-mm artillery shells.
- Production capacity: Artillery shell plant will produce 100,000 shells annually, following NATO standards.
- Strategic impact: Enhances Bulgaria’s defense capabilities and strengthens NATO supply chains.
- Future plans: Discussions underway for additional investments in drone design and production.
Rheinmetall CEO Armin Papperger announced the Bulgarian investments during a meeting in Düsseldorf with former Bulgarian Prime Minister Boyko Borisov.
“Rheinmetall, together with Bulgaria, will soon build at least two factories in Bulgaria. The first will focus on artillery shell production,” Papperger told state-owned BTA news agency. “Even more important is our gunpowder joint venture, which will be a game-changer for European defense.”
Europe’s largest gunpowder plant
Gunpowder, the core explosive material used in ammunition, artillery shells, and small arms, is critical for national security and military readiness. By establishing Europe’s largest gunpowder plant, Rheinmetall aims to reduce dependency on imports, secure supply chains for NATO allies, and advance Bulgaria’s defense industry.
Papperger added: “The Bulgarian government and Rheinmetall will jointly invest over €1 billion in producing these extremely important components. This is just the beginning of a long-term and successful cooperation.”
The first factory will produce over 100,000 155-mm artillery shells annually, following NATO specifications. Consequently, this production will strengthen Bulgaria’s strategic position within the alliance.
Borisov highlighted the significance of the projects:
“The artillery shell production plant is extremely important for the Bulgarian army and for Europe as a whole, while the gunpowder facility will be as big as two German factories, making it the largest in Europe.”
Support and future plans
The Bulgarian government has secured state funding for the investment and informed the European Commission. Contracts are expected to be finalised within three weeks for parliamentary ratification.
Borisov also revealed that discussions are ongoing for an additional investment in drone design and production, with further announcements anticipated once agreements are concluded.
