Denmark will provide a state guarantee for a loan of 750 million Danish kroner (approximately $112 million) for the Danish subsidiary of Ukrainian drone and missile manufacturer Fire Point. Reuters reports this, citing the Danish government, according to UNN.
Details
As explained by the Danish government, the state guarantee is necessary because, due to the war in Ukraine, the company is unable to obtain financing in Denmark on normal market terms. The loan will be provided through the Danish Export and Investment Fund (EIFO).
According to Reuters, citing a statement by Danish Defence Minister Troels Lund Poulsen, locating production abroad enables Ukraine to protect supply chains from Russian attacks.
The Danish plant for producing rocket fuel is expected to begin operating by the end of 2027.
Let us remind you
As UNN reported, Fire Point is building a solid rocket fuel plant in the Danish town of Vojens in the south of the country, where FP-7 and FP-7.x missiles and boosters for Flamingo will be filled. This is the first case within NATO in which a member state has allowed a Ukrainian defence company to establish a production facility on its territory.
As Fire Point CEO Iryna Terekh reported, the plant's total area will exceed 120,000 square metres, with a capacity ranging from 800 to more than 4,100 missiles per year, depending on demand. The construction process required a review of the regulations and expertise governing the construction of such large-scale facilities. In addition, the Danish authorities eliminated more than 20 legislative barriers overall.
During the war in Ukraine, the plant will operate to meet the needs of our Defence Forces; later, it is planned that the fuel will also be supplied to European partners.