Bulgaria's Rheinmetall ammunition plant faces political dispute

Opposition parties in Bulgaria warn that the government is endangering a strategic €1 billion investment to build a Rheinmetall ammunition and propellant factory. The project, a joint venture between German defence group Rheinmetall and the state-owned arms manufacturer VMZ, is slated to produce munitions for the Bulgarian army, NATO allies and the wider EU market.

The budget for the 2026 plan allocates €260 million to the state company that will construct the plant and €407 million to the joint venture with Rheinmetall. Opposition figures claim the executive lacks sufficient funding, has not signed a final agreement and may renegotiate terms, risking the loss of the investment to a neighbouring country. Government officials counter that an agreement with Rheinmetall has been signed, know‑how has been transferred and the necessary steps have been taken.

If the project collapses, critics say it would be a strategic error for Bulgaria and could shift the facility to another regional state. The plant is viewed as vital for strengthening Bulgaria’s defence industry and for EU security, echoing Rheinmetall’s broader expansion in Europe, including a recent partnership in Croatia.