Bulgaria and Germany have announced a £1 billion ($1.1 billion) joint defense initiative, which includes the construction of new facilities in Bulgaria to produce artillery shells, NATO-standard ammunition, gunpowder, and long-range weapons. The project underscores growing European cooperation in defense production.
The partnership is spearheaded by Bulgaria’s Citizens for European Development (GERB) party in coordination with Rheinmetall, the German defense giant headquartered in Düsseldorf. Talks began in March 2025 and gained momentum in April, signaling deepening ties between the two nations’ defense industries.
Contracts for the venture are expected to be finalized within three weeks, with financial backing already secured from Sofia and the European Commission notified. Alongside munitions production, Bulgaria is also considering the launch of a drone manufacturing plant, further diversifying its defense output.
Although specific sites have yet to be confirmed, Bulgaria’s state-owned arms manufacturer in Sopot is expected to play a central role. The collaboration is projected to create thousands of jobs, strengthen Bulgaria’s standing within NATO, and boost Rheinmetall’s goal of generating €1 billion annually while increasing tax revenues and enhancing regional defense capacity.
