Bulgaria and Germany are set to embark on an ambitious $1.1 billion initiative aimed at enhancing their defense industries, with a focus on establishing new production facilities in Bulgaria. This strategic collaboration will focus on developing artillery shells, gunpowder, NATO-standard rounds, and long-range weapons. The Bulgarian political party Citizens for European Development (GERB) is leading this effort alongside Düsseldorf-based defense contractor Rheinmetall.
The discussions regarding this project originated in March 2025 and gained momentum in April, reflecting a robust partnership and increasing integration between the defense sectors of both nations. Contracts for these ventures are anticipated to be finalized within the coming three weeks, with funding already secured from Bulgaria’s governmental resources and preliminary notifications sent to the European Commission.
In addition to traditional armaments, plans are in place for establishing a separate facility dedicated to drone manufacturing, based on reports from local news agency BGNES. While specific sites for these new operations have not yet been announced, it is expected that Bulgaria’s state-owned arms producer located in Sopot will play a pivotal role in this undertaking.
The initiative is designed not only to bolster Bulgaria’s role within NATO but also to enhance the overall defense capabilities of Europe. The joint venture is projected to create thousands of jobs, providing a significant boost to the local economy. Furthermore, Rheinmetall has set ambitious goals, targeting an annual revenue of 1 billion euros from this collaboration, which would generate substantial tax revenue and elevate Bulgaria’s profile in the defense industry.
