Rheinmetall, Bulgaria’s VMZ to Jointly Produce Artillery Ammo

Rheinmetall and Bulgaria’s VMZ (Vazovski Mashinostroitelni Zavodi) signed an agreement Tuesday to establish a joint venture for the development and production of artillery shells and energy materials.

The total investment for the joint venture amounts to approximately €1 billion. Rheinmetall holds 51% and VMZ 49% of the joint venture. 

The production facility will cover approximately 100 hectares. The site is located in the Sopot area. The joint venture is expected to create around 1,000 jobs. Annual production capacity is projected to be around 100,000 projectiles, as well as propellant charges for up to 150,000 projectiles. In addition, the joint venture will produce approximately 1,300 tons of propellant powder. This capacity is intended to support VMZ's business.

According to current plans, the production of projectile casings is scheduled to begin in 2027. Energy materials are slated to be produced starting in 2028.