The Defence Industry in Bulgaria
The industry in numbers
- The 20 or so leading producers had net sales of more than €2 billion in 2024, over three times their 2020 revenue, and value added of just over €1 billion.
- Sales grew more than 30% in the last year; value added rose 50% in 2024 and nearly fourfold since 2020.
- Weapons and ammunition account for about 9% of manufacturing value added and 1.2% of the whole economy, with labour productivity twice the industry average.
- Employment was just over 20,000 in 2024, 16% more than in 2020. Investment in fixed assets reached €105 million, 18.6% more than in 2023.
Source: Economic.bg: The defence industry of Bulgaria in figures, Institute for Market Economics (20 September 2026, in Bulgarian)1
Rheinmetall in Bulgaria
In August 2025 the government and Rheinmetall agreed to invest more than €1 billion together in at least two plants: one for 155 mm artillery shells, with a design capacity of 100,000 shells a year, and a joint venture for gunpowder. A drone production facility was also discussed.3
In October 2026 the Minister of Economy set a target of 30 months to build the plant, with full technology transfer as the next step.2
Doing business in the sector
Production and trade in arms and dual-use goods need licences from the Bulgarian authorities, and exports are subject to EU and international controls. Work with a lawyer experienced in export control before you start.
Frequently Asked Questions
How much does Bulgaria export in defence goods?
Bulgaria’s defence exports were approximately €2.3 billion in 2025, making defence goods the country’s fifth-largest goods export; arms and ammunition have become one of Bulgaria’s largest exports.
How much revenue do Bulgaria’s leading defence producers generate?
Bulgaria’s roughly 20 leading defence producers generated more than €2 billion in net sales in 2024, over three times their 2020 revenue, and recorded value added of just over €1 billion.
What is planned for Rheinmetall’s investment in Bulgaria?
In August 2025, Bulgaria’s government and Rheinmetall agreed to invest more than €1 billion jointly in at least two plants: a 155 mm artillery-shell plant designed to produce 100,000 shells a year and a gunpowder joint venture. A drone production facility was also discussed. In October 2026, the economy minister set a 30-month construction target, with full technology transfer as the next step.
Sources
- Economic.bg: The defence industry of Bulgaria in figures, Institute for Market Economics (20 September 2026, in Bulgarian)
- BTA: Deputy PM Poulev sets 30-month target for Rheinmetall plant (4 October 2026)
- Militarnyi: Rheinmetall agrees to build two plants in Bulgaria (26 August 2025)
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
