Agency Report –
German defence contractor Rheinmetall has signed a contract with Bulgaria worth €1 billion ($1.2 billion) for a joint venture to build a new factory for gunpowder and ammunition, Sofia announced on Tuesday.
Under the deal signed by Rheinmetall chief executive Armin Papperger and the executive director of Bulgaria’s state-owned defence company WMZ, Ivan Gezov, Rheinmetall holds 51% of the shares, while Bulgaria gets 49%.
The new plant, to be established on the WMZ premises near Sopot in central Bulgaria, is to produce gunpowder and 100,000 artillery shells per year in accordance with NATO standards. It is expected to create around 1,000 new jobs and could be completed within 14 months.
“We will build up enormous production potential,” Papperger said. He said that according to the Bulgarian government, the European Union and NATO need millions of shells.
“This project would not be possible without the synergy generated by the [European] Union and NATO to better defend Europe on behalf of its citizens,” said Bulgarian Prime Minister Rosen Zhelyazkov.
Bulgaria’s Economy Minister Peter Dilov said the partnership combines “Germany’s technological experience and Bulgaria’s industrial potential.”
