Artillery ammunition manufactured by Rheinmetall at the Security Equipment International (DSEI) exhibition at the London ExCeL Exhibition Centre, London, United Kingdom, on September 9, 2025. Getty Images/John Keeble
As reported by Reuters News Agency
German arms company Rheinmetall and Bulgaria have signed an agreement worth over 1 billion euros for the construction of a plant that will produce gunpowder and 155 mm caliber artillery ammunition. This agreement highlights the importance of modernizing Europe’s defense capabilities in the face of security challenges following Russia’s invasion of Ukraine.
The project envisions creating a joint venture between Rheinmetall and the Bulgarian VMZ, where the German group will hold 51% and VMZ 49%. Bulgaria will finance its share through a loan under the European SAFE mechanism.
The contract was signed by Rheinmetall’s CEO Armin Papperger and VMZ’s chairman Ivan Getsov during a ceremony at the Council of Ministers in Sofia.
Leaders’ positions and further plans
“With the signing of this contract we mark the start of a strategic partnership between the Bulgarian state and the German technology group that will reshape the future of Bulgaria’s defense industry”
– Rosen Zhelyazkov
Papperger said the construction of the plant would take about 14 months, and Bulgaria would make a significant contribution to meeting Europe’s and NATO’s ammunition needs.
In October 2024, Papperger spoke about the launch of Rheinmetall’s first plant within another joint venture between Ukroboronprom and the German group.
In August 2025, he noted that the company plans to double the production capacity of 155 mm caliber artillery shells at the future plant in Ukraine, which is currently under construction, enabling the production of more than 300 thousand shells per year.
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