Bulgaria faces funding challenges for joint plant with Rheinmetall

EUR 40 million has already been paid for the planned propellant plant with Rheinmetall, but Bulgaria lacks the funding to finance the entire project. No contract has been signed for the construction of the joint propellant plant between VMZ Sopot and the German defence group Rheinmetall, Deputy Prime Minister and Minister of Economy, Investment and Industry Alexander Poulev said at a hearing in the Parliament's Committee on Economic Policy, Investments and Industry, reported the Bulgarian News Agency (BTA).

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

The planned factory for propellant, NATO-standard 155 mm artillery shells and modular charge systems was agreed in 2025 and is expected to create 1,000 jobs. Bulgaria's contribution to the investment is expected to total EUR 420 million, which would come from the EU's SAFE instrument.

However, according to Minister Poulev, resources under the SAFE mechanism amount to only 10% to 15% of the necessary funding.

"Germany is a key economic and trade partner, and we want to work effectively with them. However, this is a complex process. There are technical issues related to the site, and a comprehensive review of the project's key parameters will be carried out", Deputy Prime Minister Poulev said.

Edited by Ivo Ivanov

Translated by Kostadin Atanasov