Rheinmetall: Government Hopes for New Investments After Launch

The Bulgarian government is in the process of negotiating with the German defense giant "Rheinmetall" for the construction of two new factories on the country's territory, hoping that this initial investment will pave the way for future expansion into more high-tech production. Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev expressed this confidence in a television interview, emphasizing his many years of experience with German investors.

Strategic Production for National Security

The planned project provides for the construction of two production complexes: the first will specialize in the production of artillery shells, compliant with NATO standards, and the second will be a joint venture, focused on the production of gunpowder. These initiatives are considered critically important for strengthening Bulgaria's defense capabilities and reducing dependence on imports of key components.

Donchev emphasized the importance of domestic production of explosives for the military industry, calling gunpowder "a very valuable resource". He argued that the country's ability to produce this resource itself is of vital importance for national security. The minister used strong rhetoric to illustrate the potential risks of external dependence in the event of a military conflict. "God forbid, if it becomes necessary and Bulgaria finds itself in a situation, I will use the euphemism "kinetic clash", which is a euphemism for war, if God forbid it becomes necessary, will we wait for a delivery of gunpowder from Africa? Or from Asia?", he asked rhetorically.

Path to High-Tech Investments

According to the Deputy Prime Minister, the successful implementation of the initial two projects will be a key factor in attracting additional, more complex investments from "Rheinmetall". He shared his experience of working with German companies: "I have a very long experience of working with German investors. From this experience, I know that you start with something a little bigger and as things get going, the size of the investment increases."

Donchev highlighted the wide range of activities of "Rheinmetall" as a global leader in the defense industry, which produces not only ammunition, but also military equipment, trucks, radars, and other high-tech products. He expressed his personal expectations for future cooperation, which could lead to investments generating much higher added value for the Bulgarian economy. "I would be happy to have an investment at a much higher technological level, which would guarantee a much higher added value", he added.

Challenges for Bulgarian Industry

Minister Donchev also touched on the broader economic problems facing Bulgarian industry. He pointed to the lack of a qualified workforce as one of the most serious problems. However, he emphasized that industry remains a main driver of the economy, forming 28% of the country's GDP - a share that is larger than that of agriculture and tourism combined.

These comments come against the backdrop of the government's ongoing efforts to modernize and diversify the economy, attracting foreign investments in sectors with high technological value. The project with "Rheinmetall" is seen as a key step in this direction, which could have a long-term positive effect on the country's defense industry and economic development.