German arms giant Rheinmetall expands into Bulgaria with artillery and drone plants

The German defence and automotive technology company Rheinmetall will establish two new plants in Bulgaria to produce gunpowder, artillery shells, and drones.

Boyko Borissov, leader of the Citizens for European Development of Bulgaria party, shared on Facebook that the new facilities will include a plant producing 155-millimetre artillery shells, with an expected output of approximately 100,000 shells in its first year, Caliber.Az reports.

Plans for a drone production facility are also under discussion.

Borissov noted that the powder factory, to be located at the Vazovsky Machine-Building Plant in Sopot, will be the largest in Europe. A contract for the creation of a joint venture to construct the plants is expected to be prepared within three weeks.

Negotiations between the Bulgarian government and Rheinmetall began in March, with agreements on the construction of the plants scheduled for submission to the Bulgarian parliament for ratification in the coming weeks. The total investment is projected at around €1 billion.

The press service of Bulgarian President Rumen Radev stated that the head of state will visit Germany on August 27-28 to participate in the opening of a Rheinmetall plant.

Rheinmetall AG, headquartered in Düsseldorf, is Germany’s largest arms manufacturer and Europe’s fifth-largest. It specialises in armoured vehicles, artillery systems, and ammunition, including the Leopard 2 tank and the Panther KF51 next-generation main battle tank.

The company also has a strong civilian sector presence through Rheinmetall Automotive, which ranks among the top 100 global auto industry suppliers and produces components such as exhaust gas recirculation systems and pistons for both commercial and military vehicles.

Rheinmetall has seen significant growth in recent years, driven by rising defense spending in Europe. In 2024, it reported a record revenue of €9.75 billion, up 36% from the previous year, with an operating profit of €1.48 billion and an order backlog of €55 billion, with further growth expected in 2025.

The company is expanding internationally, including in the United States, where American Rheinmetall, based in Michigan, develops advanced tracked and wheeled vehicles and components for U.S. military modernisation.

Under CEO Armin Papperger, Rheinmetall has become a key figure in European defence, notably supplying arms and munitions to Ukraine, and has established itself as a major player in the global defence industry.

By Tamilla Hasanova