Bulgaria, Germany Unveil $1B Joint Defense Industry Projects

Sofia: Bulgaria and Germany are launching 1 billion pounds ($1.1 billion) in joint defense industry projects, including new plants in the Balkan state to produce artillery shells, gunpowder, NATO-standard rounds, and long-range weapons.

The cooperation is led by Bulgaria’s Citizens for European Development party (GERB) and Düsseldorf-based defense contractor Rheinmetall.

Discussions began in March 2025 and intensified in April, reflecting growing collaboration and strong ties between the two countries’ defense sectors.

Contracts for the project are expected to be finalized within the next three weeks, with funding from Sofia secured and the European Commission informed.

Plans are also underway for a separate drone manufacturing facility, according to local Bulgarian news agency BGNES.

Although no locations have been officially confirmed, Bulgaria’s state-owned armaments producer in Sopot is expected to play a central role in the initiative.

GERB and Rheinmetall said the investments are intended to strengthen Bulgaria’s role within NATO and Europe’s overall defense capabilities.

The joint venture is expected to create thousands of jobs in the Balkan nation, boosting the local economy.

Additionally, Rheinmetall aims to achieve a turnover of 1 billion euros annually, generating significant tax revenue and enhancing Bulgaria’s defense industry profile.