Rheinmetall and Bulgaria’s VMZ establish joint venture to produce artillery ammunition

Rheinmetall and Bulgarian company VMZ (Vazovski Mashinostroitelni Zavodi) are establishing a joint venture for the development and manufacture of artillery shells and energetic materials, with an agreement to that effect signed on 28 October 2025.

The total investment in the joint venture amounts to approximately EUR 1 billion, which Rheinmetall asserted as “one of the most significant investments in ammunition production in recent years”. Rheinmetall will hold a 51% stake in the new joint venture, with VMZ holding the remaining 49%.

The ammunition production facility, located in the town of Sopot in Bulgaria’s Plovdiv Province, will cover an area of around 100 hectares, with the joint venture expected to create around 1,000 jobs.

Annual production capacity for the site will be around 100,000 shells as well as propellant charges for up to 150,000 shells. In addition, the joint venture will produce approximately 1,300 tonnes of propellant powder, with this capacity supporting VMZ’s business. According to current plans, production of projectile casings is scheduled to begin in 2027, with energetic materials to be produced from 2028 onwards.

“We are grateful for the Bulgarian government’s confidence in our capabilities,” Armin Papperger, Rheinmetall CEO, was quoted as saying in a company press release. “With the new production facility, we are further expanding our leading role as a manufacturer of artillery ammunition to continue supporting the defence capabilities of the European Union and NATO.”