Rheinmetall has signed a deal to build a munitions plant in Sopot, Bulgaria

The Bulgarian government and the German defence group Rheinmetall have signed an agreement in Sofia to build a gunpowder and 155 mm artillery shell factory at the state-owned Vazov Machine Building Works (VMZ) in Sopot.

The deal was signed by Rheinmetall Chief Executive Officer Armin Papperger and VMZ Executive Director Ivan Getsov. The ceremony was attended by Prime Minister Rosen Zhelyazkov, Economy Minister Petar Dilov, and Germany’s ambassador to Bulgaria, Irene Maria Plank.

“There is much work ahead to unlock the full potential of the Bulgarian plant. We have established a stable and predictable partnership with our partners,” said Prime Minister Rosen Zhelyazkov.

Papperger said he expected other European companies to invest in Bulgaria’s defence industry.

The nearly 500 million euro investment will create around 1,000 jobs and is seen as key to modernising Bulgaria’s defence sector. It is part of broader EU and NATO efforts to strengthen Europe’s defence capabilities.