Rheinmetall will hold a 51% share in the new company, while VMZ will retain the remaining 49%. The production site, located in Bulgaria’s Sopot region, will span around 100 hectares.
The facility is expected to create approximately 1,000 new jobs. Once operational, it will produce around 100,000 artillery shells and enough propellant charges for up to 150,000 shells annually, along with some 1,300 tonnes of propellant powder to support VMZ’s activities.
Initial production of projectile casings is scheduled to begin in 2027, with the manufacture of energetic materials planned to follow in 2028. The new site will strengthen Bulgaria’s defence manufacturing capacity within the framework of European and NATO supply chains.
“We are grateful for the Bulgarian government’s confidence in our capabilities,” said Armin Papperger, CEO of Rheinmetall AG. “With the new production facility, we are further expanding our leading role as a manufacturer of artillery ammunition to continue supporting the defence capabilities of the European Union and NATO.”
Rheinmetall AG, headquartered in Düsseldorf, is a listed integrated technology group and a key international systems supplier to the defence industry. In 2024, the company employed 40,000 people across 174 sites worldwide and generated sales of €9.8 billion.
