Rheinmetall is significantly expanding its munitions manufacturing capacity in Europe, with new facilities in Bulgaria and Germany to meet rising demand driven by ongoing conflicts such as the Ukraine war.

In Bulgaria, Rheinmetall plans to invest over €1 billion to establish a NATO-standard 155mm ammunition factory, aiming to modernize Bulgaria's armed forces and support regional security, with the project expected to be finalized within three weeks.

The announcement of the Bulgarian project was made on August 26, 2025, and the company anticipates signing contracts shortly thereafter.

The company emphasizes its commitment to Bulgaria as a reliable partner and plans to disclose further details after the contract signing.

Bulgarian political figures, including Boyko Borissov, have engaged with Rheinmetall’s CEO to discuss the project, emphasizing its strategic importance.

This Bulgarian initiative aligns with Bulgaria’s broader goals to modernize its military and develop advanced defense technologies, including drone production.

Meanwhile, a protest camp called 'Rheinmetall entwaffnen' has been set up in Cologne to oppose military arming, despite initial bans, highlighting public concerns over the escalation of warfare.

Rheinmetall is shifting its business focus from auto parts to defense manufacturing, reflecting a strategic move to capitalize on increased military procurement, especially from the German Bundeswehr.

These factories will bolster NATO’s resilience by reducing dependency on external suppliers and positioning Bulgaria as a key contributor to European defense capabilities.

These plants are designed to meet the urgent European demand for ammunition, supporting NATO operations and the ongoing conflict in Ukraine, with production targets of up to 1.5 million shells annually.

The joint ventures will combine German technological leadership with Bulgaria’s industrial infrastructure to create NATO-standard facilities that enhance interoperability and regional security.

The Unterlüß plant in Germany aims to strengthen European military capabilities amid rising defense needs, with notable political and NATO officials attending its opening.

Supported by the European Commission’s SAFE mechanism, this project marks the largest defense industrial investment in Bulgaria in decades, leveraging the country’s existing military manufacturing expertise.

In addition to Bulgaria, Rheinmetall is opening a major munitions plant in Unterlüß, Lower Saxony, with an investment of nearly €500 million, which will become Europe's largest when operational.

The German factory aims to produce 25,000 shells by the end of 2025 and up to 350,000 shells in 2027, significantly expanding Rheinmetall’s European ammunition capacity.

The Vazovski Mashinostroiteleni Zavodi (VMZ) plant in Bulgaria will produce around 100,000 rounds annually, addressing critical shortages and expanding Rheinmetall’s regional manufacturing network.