Bulgaria Partners with Rheinmetall for Groundbreaking Defence Plant
Bulgaria and Rheinmetall have signed a €1 billion contract to establish a substantial gunpowder and artillery shell plant. This venture, seen as a strategic defense upgrade, will bolster Europe's military capabilities post-Ukraine invasion. Set to create 1,000 jobs, the project aims to enhance Bulgaria's defense industry.
In a landmark deal, Bulgaria and European defense titan Rheinmetall have inked a contract exceeding 1 billion euros to build a state-of-the-art factory producing gunpowder and 155-mm artillery shells. This collaboration marks a significant stride in bolstering the regional defense infrastructure amid escalating military demands following Russia's invasion of Ukraine.
The project, a joint endeavor with Bulgaria's VMZ, will see Rheinmetall holding a 51% stake. Bulgaria aims to fund its 49% share through a loan under Europe's SAVE scheme, aimed at enhancing defense investments. The agreement was signed by Rheinmetall CEO Armin Papperger and VMZ director Ivan Getsov at Sofia's Council of Ministers.
Prime Minister Rosen Zhelyazkov highlighted the strategic partnership's transformative potential for Bulgaria's defense industry. Set to be operational within 14 months, the plant will significantly contribute to European and NATO ammunition needs, creating approximately 1,000 jobs. This development underscores Bulgaria's accelerated pace in defense advancements.
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