Denmark begins construction of a Ukrainian-operated rocket fuel facility near Skrydstrup Air Base, marking the first overseas expansion of a Ukrainian defence company.
Credit: Polina Yanchuck / Shutterstock
Denmark has begun construction on a groundbreaking facility that will produce rocket fuel for Ukraine’s defence forces, marking the first overseas expansion of a Ukrainian defence company.
The Danish government announced the project on September 3, 2025, describing it as a “helping hand” for Ukraine in its ongoing struggle to maintain sovereignty and security amid ongoing conflict with Russia.
The facility will be operated by Fire Point, the Ukrainian manufacturer of the Flamingo missile, which Ukrainian President Volodymyr Zelenskiy has hailed as one of the country’s most successful weapons.
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Production will take place near Skrydstrup Air Base in southern Jutland, home to Denmark’s fleet of F-16 fighter jets, a location chosen for its strategic defence infrastructure and operational security.
Strategic and Political Significance
For Denmark, the project signals continued commitment to supporting Ukraine. Since the full-scale Russian invasion in 2022, Denmark has contributed DKK 67.6 billion ($10.13 billion) in military support, according to the Danish Foreign Ministry.
In addition, the government recently allocated DKK 500 million to facilitate Ukrainian firms’ expansion within Danish territory.
“This is a helping hand to Ukraine’s struggle for security, their own independence and, not least, their opportunity to live in peace,” said Troels Lund Poulsen, Danish Defence Minister, at a press conference announcing the project.
The move positions Denmark as a key partner in strengthening Ukraine’s self-sufficiency in defence production while providing NATO territory as a secure location for sensitive operations.
Facility Details and Operations
Although precise technical details remain restricted, the facility will focus exclusively on producing solid rocket propellant for missiles. Fire Point will not assemble complete missile systems on Danish soil, ensuring that the plant remains within the limits of international regulations and Danish law.
The project represents a significant logistical achievement: relocating critical production capabilities to a secure NATO member state reduces the risk of disruption from ongoing hostilities in Ukraine.
Solid rocket propellant, typically composed of oxidisers like ammonium perchlorate, aluminium powder, and polymer binders, allows for stable, long-term storage and reliable missile performance.
Industry sources stress the importance of rigorous safety protocols in handling and storing these materials, including explosion-proof facilities, specialized ventilation, and transport in approved containers. Denmark has pledged oversight and compliance with its national safety and environmental standards.
Legal and Regulatory Framework
To facilitate the project, Denmark fast-tracked approvals for the facility under a special governmental framework designed to support critical defence initiatives.
The Ministry of Industry, Business, and Financial Affairs noted that these measures are temporary, ensuring that construction and initial production phases can proceed without the usual delays associated with environmental, construction, and regulatory approvals.
While critics have raised concerns about bypassing standard processes, Danish authorities emphasise that safety and operational oversight remain paramount.
“Now, for the first time, a Ukrainian company will establish production in Denmark,” the Ministry stated, highlighting the unprecedented nature of the initiative.
Public consultations, including town hall meetings in Vojens, are planned to inform local communities and address environmental and safety concerns.
Environmental and Safety Considerations
The handling and production of solid rocket propellant carry inherent risks. Combustion and production of ammonium perchlorate-based propellants can produce hazardous particulates and pollutants.
Danish authorities have committed to implementing containment measures, emission controls, and continuous monitoring to minimise environmental impact.
Safety standards are expected to align with both Danish law and international best practices, reflecting lessons learned from similar facilities elsewhere.
Geopolitical Implications
The establishment of a Ukrainian defence production site in NATO territory has significant geopolitical implications. It not only safeguards Ukrainian manufacturing from potential Russian strikes but also strengthens logistical and technical integration with NATO allies.
Russia has criticised Denmark’s decision, framing it as a provocative act, though Danish officials stress the defensive and stabilising rationale behind the move.
“This initiative ensures that critical production can continue safely, reducing operational risks while supporting Ukraine’s defence capabilities,” said Morten Bødskov, Danish Minister for Industry, Business, and Financial Affairs.
Analysts note that this step reflects a broader European strategy of relocating sensitive military production to more secure territories.
Timeline and Future Prospects
Construction has officially started in late 2025, with production expected to begin in 2026. The Danish government’s financial contribution, alongside Fire Point’s operational expertise, aims to expedite the facility’s commissioning.
Long-term plans include scaling production to meet Ukraine’s defence requirements while ensuring all operations comply with Danish safety and environmental regulations.
As Ukraine continues to seek international support for its defence, Denmark’s initiative serves as a model for transnational collaboration in military technology. By hosting the first overseas Ukrainian defence production site, Denmark is signalling both solidarity with Ukraine and its commitment to European security.
The Skrydstrup facility will be closely monitored by Danish regulators and may serve as a blueprint for similar projects in other NATO countries, balancing strategic defence support with domestic oversight, community engagement, and environmental stewardship.