Denmark Guarantees 750 Million Kroner Loan for Defence Factory

Denmark will back a big loan for a rocket fuel factory. The state provides a guarantee of 750 million Danish kroner. A Ukrainian defense company named Fire Point will build the plant. The factory will be located in Vojens in southern Jutland.

The Ministry of Industry announced the financial support in a press release. The ongoing war makes normal bank loans difficult for Fire Point. Therefore, the Danish government stepped in to secure the funding.

The factory site is near the Skrydstrup Air Base. Production will now begin in late 2027. This start date is one year later than planned. Company chief Iryna Terekh cited slow construction progress for the delay.

Denmark invited Fire Point to produce weapons locally in September 2025. It is the first NATO country to host Ukrainian defense manufacturing. Business Minister Martin Lidegaard said the project strengthens European security.

Special legislation passed in late 2025 allows special rules for this project. Defense Minister Jeppe Bruus can temporarily bypass over 20 normal laws. These include environmental protection and nature conservation rules. Fire Point must comply with standard rules later. This news was reported by CPH Post.