Photo: Economy and Industry Ministry
The Bulgarian government and German automotive and arms manufacturer Rheinmetall officially announced on 28 October the start of a nearly BGN 1 billion project to build a gunpowder and ammunition factory in Karlovo (Central Bulgaria). At a ceremony held at the Council of Ministers building, an agreement was signed by Rheinmetall's CEO Armin Papperger and CEO Division Weapon and Ammunition Roman Kohne and by VMZ ordnance plant Executive Director Ivan Getsov.
The ceremony was attended by Prime Minister Rosen Zhelyazkov, Deputy Prime Minister and Innovation and Growth Minister Tomislav Donchev, Economy and Industry Minister Peter Dilov, GERB Chair Boyko Borissov, and German Ambassador to Bulgaria Irene Maria Plank.
Rheinmetall CEO Armin Papperger said Bulgaria will become a centre of excellence in the defence industry for the whole of Europe. He praised the Bulgarian side for its speedy operations and for the efforts it invested to make cooperation with Rheinmetall possible. He noted that cooperation began at the Munich Security Conference that took place on February 14-15. Papperger said the project will create one of the world's most modern factories for gunpowder and ammunition.
He said the plant will have an annual production capacity of 100,000 155 mm shells that will be exported over the next 10 years. He added: "The European Union and NATO need millions of such shells, and according to our calculations, the Alliance will need about 50 million." The CEO of Rheinmetall emphasized that his company values the trust of the Bulgarian government. He added that this joint project is just the beginning and that Rheinmetall plans to make additional investments in Bulgaria.
Prime Minister Rosen Zhelyazkov said there is much work ahead, which will lead to the creation of enormous potential through the establishment of a gunpowder and ammunition factory. Speaking at the signing ceremony between VMZ Sopot and Rheinmetall, he said the agreement is a huge step forward in Bulgaria's industrial and defence capabilities. The Prime Minister said: "The signing of the agreement marks the end of a rather dynamic but productive process of preparing the shareholders' agreement and its annexes for the establishment of a joint venture between Rheinmetall and VMZ Sopot." He added that the most important thing achieved during the months of joint work is the trust and predictability between the partners.
Speaking at the signing ceremony, Economy and Industry Minister Peter Dilov said this day marks the beginning of a partnership that unites Germany's technological experience with Bulgaria's industrial potential, which will ultimately contribute to a safer future for Europe. Dilov added that this partnership will change the future of the Bulgarian defence industry. He proceeded to thank Rheinmetall CEO Papperger and his team for their high level of professionalism, consistency and dedication to the joint project. He also praised VMZ ordnance plant Executive Director Ivan Getsov for his efforts and expertise, which made this project possible. According to Dilov, this is a strategic project not only for Bulgaria but for Europe as a whole, as it will enable the development of a sustainable and independent defence capacity that will support the security of the entire region.