COPENHAGEN, — Denmark has provided a 750 million Danish kroner (approximately $113 million) state-backed loan guarantee to the Danish subsidiary of Ukrainian defence company Fire Point to build a solid rocket propellant plant in southern Denmark. The Ministry of Industry, Business and Financial Affairs announced the decision on October 21, with financing arranged through the Export and Investment Fund of Denmark (EIFO). Officials said the guarantee is necessary because the war in Ukraine prevents Fire Point from securing loans under normal commercial terms.
Rocket Fuel Production in Southern Denmark
The plant is under construction in Vojens, southern Jutland, near Skrydstrup Air Base. Covering more than 120,000 square metres, it will produce solid rocket propellant for Fire Point’s FP-7 and FP-7.x missiles, as well as boosters for its Flamingo cruise missile.
Once operational, the facility is expected to support production of 800 to more than 4,100 missiles annually. Initial output will supply Ukrainian forces, with plans to serve European defence partners in the future.
The plant is expected to begin operations by the end of 2027, about one year later than originally planned. Fire Point CEO Iryna Terekh announced the delay in August, citing slower construction and the need to meet solid rocket fuel safety requirements. The project has also required adjustments to Danish planning and environmental rules, with temporary waivers granted for more than 20 regulations, according to the reports.
The estimated plant cost has risen from around €50 million to more than €150 million. Construction began on December 1, 2025, following Denmark’s invitation to Fire Point in September 2025.
Denmark’s Support for Ukraine’s Defence Industry
Denmark became the first NATO member to host manufacturing facilities belonging to Ukraine’s defence industry. Defence Minister Jeppe Bruus said production outside Ukraine would help protect critical military supply chains from Russian attacks. He also highlighted opportunities for cooperation with the Danish armed forces and companies, including access to technologies and experience developed during the war.
Business Minister Martin Lidegaard said the project supports Ukraine’s defence needs while strengthening Denmark’s defence industry and European security. EIFO is involved in nearly 40 projects connected to Ukraine and partnerships between Ukrainian and Danish businesses.
Fire Point’s Missile Development
Fire Point develops and manufactures unmanned systems, long-range strike drones, cruise missiles and ballistic missiles. The Danish plant will expand its production capabilities outside Ukraine. The company has also signed agreements with more than a dozen European defence firms for radar, guidance and other systems associated with its Freyja missile defence project.
The loan guarantee marks another step in Denmark’s support for Ukrainian defence production through cross-border industrial cooperation. The facility’s operational start remains scheduled for the end of 2027.
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