UNTARLYUS – Bulgaria joins the European defense ecosystem with an investment from German defense company “Rheinmetall”. This announcement was made by President Rumen Radev during a joint briefing with CEO Armin Papperger at the inauguration of the company’s new high-tech ammunition factory in Unterlüs, Lower Saxony.
Rheinmetall will collaborate with the Bulgarian government to establish two factories – one for ammunition and another for gunpowder, Radev noted. This initiative aims not only at joint production but also at strengthening the long-term strategic partnership with Germany, generating jobs, implementing advanced technologies, modernizing the Bulgarian army, and expanding the Bulgarian arms industry market, the president stated.
The president expressed optimism that the new factories in Bulgaria mark the beginning of a successful partnership.
The proposed ammunition factory in Bulgaria is expected to produce 100,000 to 150,000 units annually, which is half the output of the facility in Unterlüs, according to Papperger. The gunpowder factory is particularly significant due to the heightened demand for gunpowder across Europe, he added. Papperger hopes that the production facilities for gunpowder will be fully operational by 2035.
The investment in the new factories will be shared equally between the Bulgarian government and “Rheinmetall”, said Hristo Gadzhev, chairman of the Defense Committee in the Bulgarian parliament. He mentioned that in July, the government made a request for funding under the European security mechanism SAFE. Bulgaria is among the few nations that not only purchase weapons but also invest in production capabilities, Gadzhev emphasized, stating that this will be carried out through a loan that won’t strain the budget.
On August 25, Boyko Borissov, leader of the GERB political party, met with Armin Papperger in Germany to discuss the establishment of the two new military factories in Bulgaria. Papperger revealed that the combined investment from the Bulgarian government and Rheinmetall in these factories will exceed 1 billion euros.
On August 31, Ursula von der Leyen, chairwoman of the European Commission, will visit the leading state enterprise in the military sector and Bulgaria’s largest ammunition production facility, “Vazovski Machine-Building Works” EAD, along with Bulgarian Prime Minister Rosen Zhelyazkov. (28.08.2025)
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