Copyright kyivpost
German defense company Rheinmetall announced on Oct. 28 that it had signed a joint venture (JV) with Bulgarian arms manufacturer VMZ (Vazovski Mashinostroitelni Zavodi) for the phased production of 155mm artillery ammunition and propellant. The JV is thought to be worth around €1 billion ($1.2 billion), of which the Germans will hold 51% and VMZ 49%. Once established, the production facility will cover approximately 100 hectares (250 acres) and is located near Sopot in Bulgaria’s Plovdiv Province, situated around 120 kilometers (75 miles) east of the capital Sofia. It is expected to create approximately 1,000 jobs and will reach an annual production capacity of 100,000 projectiles by 2027, and 150,000 propellant charges are planned to begin production in 2028. The new site will strengthen Bulgaria’s position within the defense framework of European and NATO supply chains. “We are grateful for the Bulgarian government’s trust in our capabilities,” Armin Papperger, CEO of Rheinmetall said. “With the new production facility, we are further expanding our leading role as a manufacturer of artillery ammunition to further support the defense capabilities of the European Union and NATO. “ Rheinmetall AG, headquartered in Düsseldorf, is listed as an integrated technology group and supplier to the global defense industry. In 2024, company records show it employed 40,000 people across 174 sites worldwide with sales of €9.8 billion ($11.8 billion). The Rheinmetall 155mm artillery ammunition manufacturing empire Ever since Russia’s full-scale invasion of Ukraine highlighted the phenomenal usage rates of artillery ammunition, particularly NATO’s 155mm caliber, Rheinmetall has ramped up its production of the ammunition by expanding or building new manufacturing facilities in five countries: Germany, Spain, South Africa, Hungary, and Ukraine, with Bulgaria now becoming its sixth. Rheinmetall says it aims to be producing up to 1.5 million 155mm artillery rounds annually by 2027 at its key production sites: Germany – The recently inaugurated “Werk Niedersachsen” facility in Unterlüß near the city of Celle in Lower Saxony will become one of Europe’s largest ammunition plants. It began trial operations in mid-2025 with an annual production target of 350,000 artillery shells by 2027. Spain – Having acquired Expal Systems in 2023, Rheinmetall turned its plants, including one in Murcia near Spain’s southeastern coast, over to 155mm production, with much of its output being directed to support Ukraine. South Africa – Rheinmetall Denel Munition (RDM), a wholly owned subsidiary of the German company, produces 155mm projectiles for which it has recently secured multi-year framework contracts worth up to €8.5 billion ($ 10 billion) with the German government to provide stocks for German, NATO European members, and Ukraine. Hungary – A new 155mm ammunition plant and an explosives factory have been set up on a 150-hectare (360-acer) site in Várpalota, 75 kilometers (47 miles) southwest of Budapest with production slated to begin in early 2026 primarily for the Hungarian Ministry of Defense. Ukraine – Rheinmetall has established several defense manufacturing facilities in Ukraine including a joint venture with Ukraine’s Ukroboronprom state enterprise, signed in February 2024 to build an ammunition plant in an unspecified “secure area” of the country. 155mm ammunition production is scheduled to start early next year, but is reliant on partner country funding.
