Ukraine’s Fire Point faces Danish setback as missile plant costs soar

A solid-fuel production plant being built in Denmark by Ukrainian missile manufacturer Fire Point has been delayed until the end of 2027, with the project’s estimated cost rising more than threefold.

The setback highlights the challenges of relocating Ukrainian weapons production to EU territory, even when governments are prepared to cut regulatory hurdles to accelerate defence projects.

Denmark removed more than 20 legislative obstacles to allow Fire Point to establish a solid-fuel production facility for its Flamingo cruise missiles. Despite the regulatory fast-track, however, the company has encountered a more difficult obstacle: the facility itself.

Production had been expected to begin by the end of 2026 but will now be postponed until the end of 2027, Fire Point CEO Iryna Terekh told Euractiv on Wednesday at a defence industry conference in Herning, Denmark.

Terekh attributed the delay to construction problems. Fire Point must build a new facility after determining that the building it initially acquired was unsuitable for manufacturing solid rocket propellant.

The Danish Business Authority has confirmed that safety requirements prevent the company from using the original building.

The change will also significantly increase the project’s cost. “The initial plan was to complete the entire project within €50 million. The cost has now risen to more than €150 million,” Terekh said.

The company has nevertheless attracted strong interest from across Europe in hosting local Fire Point production, Terekh told Euractiv last month.

Based on her experience, however, she said, “European bureaucracy is a greater threat to Europe’s defence than the Russians.”

“With Russians, you can deal with missiles and drones, but how do you fight European bureaucracy?”

For the rapidly expanding defense manufacturer, establishing production sites outside Ukraine would provide a safer and more predictable production cycle.

Fire Point has already distributed its missile and drone manufacturing across 90 different locations in Ukraine, Terekh added.

By Tamilla Hasanova