Denmark to guarantee $113 million loan for Ukrainian missile fuel plant
Denmark will provide a state guarantee for a 750 million Danish kroner ($113 million) loan to the Danish subsidiary of Ukrainian missile and drone manufacturer Fire Point, the Danish government announced on October 21.
The financing will support the company's planned solid rocket fuel production facility in southern Denmark, which is expected to begin operations by the end of 2027.
The loan will be arranged through Denmark's Export and Investment Fund (EIFO). According to the government, the state guarantee is necessary because Russia's war against Ukraine prevents Fire Point from obtaining financing on ordinary commercial terms in Denmark.
The facility is being developed in southern Jutland, near Skrydstrup Air Base. Denmark announced plans to host the Ukrainian defense manufacturer's production operations in 2025.
Danish Defense Minister Jeppe Bruus said moving parts of Ukraine's defense production abroad would help protect critical supply chains from Russian attacks.
He also said Fire Point's presence would create opportunities for Danish defense companies to cooperate with Ukrainian manufacturers and gain access to technologies and expertise developed during the war.
Denmark's Minister for Industry, Business and Financial Affairs Martin Lidegaard described the arrangement as an investment in both Ukrainian and European security.
"With a Ukrainian defense company on Danish soil, we gain knowledge, production and partnerships so that Ukraine can win, the Danish defense industry is strengthened, and Europe can become stronger and more independent," he said.
Fire Point is also developing missile defense technology. Reuters previously reported that the company had signed agreements with more than a dozen European defense firms to integrate radar, guidance and other systems into its Freyja project, intended as a Ukrainian alternative to the US-made Patriot system.
The Danish rocket fuel facility has not yet begun production.