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Rheinmetall to Build Europe’s Biggest Powder Facility—Here’s What It Means for Ukraine
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![Photo of Ivan Khomenko]( "Photo of Ivan Khomenko")
German defense company Rheinmetall, together with the Bulgarian government, plans to invest more than one billion euros in the construction of Europe’s largest gunpowder plant, as well as a new facility for the production of 155mm artillery shells.
According to Defense Express on August 27, the project will also include the development of a drone production site. The agreement, announced by former Bulgarian Prime Minister Boyko Borissov, is expected to be signed within the next three weeks.
Borissov said the gunpowder facility would mirror two existing plants in Germany, making it the largest of its kind in Europe. The expansion is intended to help reduce the continent’s shortage of explosives for ammunition.
The new 155mm shell factory will be built at Vazovski Mashinostroiteleni Zavodi, Bulgaria’s largest ammunition manufacturer, which already produces RPG-7 grenades and 122mm rockets for BM-21 Grad multiple launch systems.
Planned capacity is 100,000 shells per year. While this figure may appear modest on its own, combined with other European and Ukrainian facilities it could significantly contribute to NATO-standard artillery supplies.
The Bulgarian government and Rheinmetall expect funding from the EU’s SAFE program to cover part of the investment. Parliamentary approval is still required before construction can begin.
For Ukraine, which has actively purchased Bulgarian-made weapons and ammunition since the start of Russia’s full-scale invasion, the expansion could simplify access to additional production lines for defense needs.
Earlier, on August 7, Rheinmetall announced it would double production of 155mm artillery shells at its under-construction Ukrainian plant—from 150,000 to 300,000 per year—aiming to strengthen Ukraine’s self-sufficiency and reduce reliance on Western supply chains.
