The total investment for the joint venture amounts to approximately EUR 1 billion – one of the most significant investments in ammunition production in recent years. Rheinmetall will hold 51% and VMZ 49% of the joint venture.
The production facility will cover an area of about 100 hectares and will be located in the Sopot region. Around 1,000 jobs are expected to be created as part of the joint venture. The annual production capacity is planned to include around 100,000 shells as well as propellant charges for up to 150,000 shells. In addition, the joint venture will produce approximately 1,300 tons of propellant powder. This capacity will support VMZ’s existing business. According to current planning, production of shell casings is scheduled to begin in 2027, with the production of energetic materials starting in 2028.
“We are grateful for the trust placed in our capabilities by the Bulgarian government,” said Armin Papperger, CEO of Rheinmetall AG. “With the new production facility, we are further strengthening our leading position as a manufacturer of artillery ammunition, thereby enhancing the defense capabilities of the European Union and NATO.”
About Rheinmetall:
The publicly listed Rheinmetall AG, headquartered in Düsseldorf, stands for a technology group that is both financially strong and internationally successful, active in various markets with an innovative range of products and services. Rheinmetall is a leading international systems supplier to the defense industry and a driver of forward-looking technological and industrial innovations in civilian markets. With 40,000 employees at 174 locations worldwide, Rheinmetall generated sales of €9.8 billion in 2024.
