Estonia and Poland launch joint anti-drone missile production

Estonia and Poland have taken a new step in strengthening the eastern flank of NATO with an agreement to jointly produce anti-drone missiles. The Estonian defence-tech startup Frankenburg Technologies and Poland’s state-owned defence conglomerate Polska Grupa Zbrojeniowa (PGZ) have launched a partnership to manufacture up to 10,000 interceptor missiles per year, Estonian newspaper “Postimees” reported on 18 November.

The project centres on the Frankenburg Mark-1, a short-range interceptor described as “pocket missile”, designed to counter small, widely used unmanned aerial systems, including Shahed-type drones deployed by Russia.

It's official: "We will develop, produce, and deliver ‘Mark I’ C-UAV missiles for the Latvian MoD🇱🇻"#Latvia #WinTech pic.twitter.com/RsOEphp4A5
— Frankenburg Technologies (@FrankenburgTech) March 4, 2025

Frankenburg, led by former Estonian Defence Ministry chancellor Kusti Salm, develops mass-producible air-defence missiles and has expanded rapidly across the region, including opening offices in Latvia, Lithuania, Poland and Ukraine, as well as in the United Kingdom and Denmark.

The Baltic push continues in Lithuania, where the armed forces recently received a new batch of Spike LR2 missiles worth €5.5 million. According to Lithuania’s military, the anti-tank system provides high firepower and rapid response against a wide range of targets, including armoured vehicles and engineering structures. The missiles are integrated into Vilkas infantry fighting vehicles, enhancing long-distance combat capability. Lithuania has also replenished ammunition stocks for automatic grenade launchers, and has in recent months expanded purchases of mines and artillery shells.

Germany Orders €2B Spike LR2 Anti-Tank Missiles from EuroSpike to Rebuild Stockpiles.https://t.co/X3BnVk74Oj
— Army Recognition (@ArmyRecognition) October 22, 2025

Meanwhile, construction is beginning in Lithuania’s Radviliškis district on a new Rheinmetall facility that will produce 155-millimetre ammunition. The plant, located in the village of Kemerai on a 340-hectare site, is expected to produce tens of thousands of shells annually. Rheinmetall is implementing the €260-300 million project together with state-owned enterprises Epso-G Invest and Giraitės Ginkluotės Gamykla (GGG). Lithuanian construction firm PST Group has a €141 million contract to build the facility, due for completion by the end of 2026. According to Rheinmetall Expal Munitions CEO Jose Manuel Fernandez Bosch, production should begin in early 2027.

A growing Rheinmetall footprint in Central and Eastern Europe

Rheinmetall’s regional expansion is not limited to the Baltics. On 28 October it was announced that Bulgaria and the German defence group had signed an agreement to build a gunpowder and ammunition plant. Latvia has also reached agreement with Rheinmetall to construct an artillery ammunition factory on its territory.

Romania is the latest to join this emerging network. On 3 November, Prime Minister Ilie Bolojan said the country “is beginning to emerge as a potential player in the defence industry in Southeastern Europe” following the signing of the agreement establishing Rheinmetall-Victoria, a joint venture for gunpowder production. The future factory in the city of Victoria, Brașov county, represents “an investment of half a billion euros, around 700 new jobs, and above all, the advantage of producing gunpowder in Romania”, Bolojan said.

Construction is expected to begin in 2026 and last three years, with Romania seeking partial financing from the EU’s SAFE mechanism. Rheinmetall CEO Armin Papperger stated that the facility will be the “most modern company in the world” for producing double-base and triple-base gunpowder, with a production capacity of around 60,000 charges and 200 tonnes of powder for domestic needs.

Bulgarian concerns over transparency

Against this backdrop of large-scale defence industrial expansion, Bulgaria’s own deal with Rheinmetall is attracting domestic scrutiny. Yordan Ivanov, an MP from the pro-European PP-DB coalition, has warned that public information about the investment is “worryingly scarce”. According to Ivanov, the Minister of Economy has refused to disclose key parameters of the agreement, citing “commercial secrecy”.

Ivanov says he has requested details on decision-making procedures, the size of the investment, the share contributed by each partner, and whether in-kind contributions are planned. The only confirmed figure, he notes, is that the shareholding structure will be 51/49 in favour of Rheinmetall. “Everything else is a ‘commercial secret’,” he said.

The MP also questions who is actually investing in the plant. Public statements indicate that the Bulgarian state foresees a €500 million investment, but the German partner’s precise contribution is unclear. At the same time, Rheinmetall is expected to hold the majority stake.

Ivanov highlights further risks: the burden of social commitments if production declines after the war; the rules for corporate decision-making under a 51/49 structure; the absence of clarity on long-term purchase agreements; and whether Bulgaria will gain access to the technologies and licences that enable production.

“All of this, according to the government, is a ‘commercial secret’,” he said. He called on the Minister of Economy to disclose “the stage of negotiations, the agreed parameters and the commitments undertaken”, arguing that the public cannot be kept in the dark about the most significant defence partnership Bulgaria has pursued in decades.

Bulgaria, Rheinmetall seal 1 billion euro deal to produce gunpowder and ammunition

Sources: European Pravda, Postimees, BGNES, DSB party official site

Caption: The Frankenburg Mark-1 is a short-range interceptor described as “pocket missile”, designed to counter small, widely used unmanned aerial systems, including Shahed-type drones deployed by Russia. [FrankenburgTech on X]