Failure of the gunpowder plant project: Rheinmetall and VMZ-Sopot at a dead end

23.07.2026 | Defense

Minister Alexander Pulev has revealed serious deficits in the ammunition plant project with Rheinmetall. There is no contract, funding, or suitable site, but the government is seeking a recovery process.

Снимка от qwesy qwesy, Wikimedia Commons (CC BY 3.0)

Serious administrative and financial deficits

Deputy Prime Minister Alexander Pulev announced that the project for the construction of a gunpowder and ammunition plant between Rheinmetall and VMZ-Sopot is facing serious obstacles. At the moment, the following are missing:

"There is no contract, no joint venture, and the funding had not been provided for," stated Pulev.

The problematic terrain and public procurement

In addition to administrative oversights, a problem with the site has also been identified. The chosen plot of land is forest land, lacking the necessary water supply and energy security. At the same time, direct negotiations had been conducted with construction companies without holding public tenders.

The future of the project

Despite criticisms of the previous administration, the government confirms its political will for a partnership with the German giant. Pascal Schreyer from Rheinmetall confirmed the company's commitment, and a "recovery process" is expected to be launched for the realization of this key defense investment for Bulgaria, worth 1 billion BGN.