The Bulgarian government and German automotive and arms manufacturer Rheinmetall officially announced on Tuesday morning the start of a project to build a gunpowder and ammunition factory in Bulgaria.
At a ceremony held at the Council of Ministers building, an agreement was signed by Rheinmetall CEO Armin Papperger and Rheinmetall CEO Division Weapon and Ammunition Roman Kohne on one side, and by VMZ ordnance plant Executive Director Ivan Getsov on the other side.
The ceremony was also attended by Prime Minister Rosen Zhelyazkov, Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev, Minister of Economy and Industry Peter Dilov, GERB Chair Boyko Borissov, and Ambassador Extraordinary and Plenipotentiary of Germany to Bulgaria Irene Maria Plank.
Speaking at the ceremony, Prime Minister Rosen Zhelyazkov said that this agreement is a huge step forward in Bulgaria’s industrial and defence capabilities. According to him, there is a lot of work ahead, which will lead to the creation of enormous potential through the establishment of a gunpowder and ammunition factory.
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 participating partners. He said that the end result will be certain despite the complex conditions.
Rheinmetall CEO Armin Papperger praised the Bulgarian side for its speedy operations and said that Bulgaria will become a centre of excellence in the defence industry for the whole of Europe. According to him the project will create one of the most modern factories for gunpowder and ammunition in the world.
Papperger said that 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 the joint project with Bulgaria is just the beginning and that Rheinmetall plans to make additional investments in the country. He praised the country for having highly qualified specialists, which makes it suitable for the development of industrial and technological capacity in the defence sector.
The Council of Ministers announced that the investment of nearly BGN 1 billion is one of the most significant in recent years and is a key step in the modernization of the Bulgarian defence industry. It is also part of the efforts of the European Union and NATO to strengthen Europe’s defence capabilities and strategic autonomy in the context of the changing geopolitical environment, the Cabinet said.
According to the Cabinet, economic growth, the development of state-of-the-art production facilities, and nearly 1,000 new highly skilled jobs are just some of the benefits Bulgaria will reap from the implementation of this project. With the construction of the plant, Bulgaria will restore a key element of its defence capacity and strengthen its position in the European defence industry. The innovative plant for the production of gunpowder and 155 mm shells and modular charge systems will be implemented through a joint venture between Rheinmetall and VMZ Sopot, which operates Bulgaria’s largest state-owned defence factory.
