Denmark will guarantee a DKK 750 million (about €100 million) loan to the Danish subsidiary of Ukrainian defence manufacturer Fire Point, which is building a rocket fuel factory in southern Denmark. The measure was announced by the Danish Ministry of Business and Competitiveness on Wednesday, 21 October.
The financing will be arranged through the Export and Investment Fund of Denmark (Danmarks Eksport- og Investeringsfond, EIFO), a state-backed institution supporting investments and business activity. According to the government, Russia’s war in Ukraine prevents Fire Point from securing the loan under ordinary commercial conditions in Denmark. The measure is a state guarantee for a loan, not a direct government grant.
Fire Point’s rocket fuel factory delayed until 2027
The Ukrainian company plans to manufacture solid rocket fuel in Vojens, a town in Southern Jutland near Skrydstrup Air Base. The fuel is intended for missiles and other military equipment used by Ukraine.
Denmark invited Fire Point to establish production on its territory in September 2025, becoming the first NATO country to welcome Ukrainian defence manufacturing in this way. Construction began in December 2025, but the project has since been delayed.
In August, company chief executive Iryna Terekh said production was expected to begin in late 2027, approximately one year later than first planned. According to reporting by Ritzau, the Danish Business Authority said safety requirements meant the company could not use an existing building and instead needed a new production facility.
DR reported that Denmark’s special framework for defence projects of major national importance allows certain planning, environmental and other requirements to be temporarily set aside. Fire Point is expected to meet ordinary requirements for such facilities in due course.
Denmark links Fire Point financing to European defence production
Minister of Business and Competitiveness Martin Lidegaard said the loan guarantee would support Ukraine while helping Denmark gain industrial expertise and strengthen Europe’s defence manufacturing capacity.
Defence Minister Jeppe Bruus argued that locating some Ukrainian production outside the country would make military supply chains less vulnerable to Russian attacks.
When Ukrainian defence industry is established outside Ukraine, production is better protected from Russian attacks.
Bruus said the project could also create opportunities for cooperation between Fire Point, Danish businesses and the armed forces, including access to technology developed during the war.
The financing announcement comes as Denmark seeks to strengthen security around defence companies involved in assistance to Ukraine. Earlier this month, NordiskPost reported on intelligence warnings about Russian sabotage preparations targeting Danish defence firms. The authorities have not said that Fire Point’s planned Vojens factory was the target of any such attempt.
The state-backed loan addresses an important financing obstacle for Fire Point, but the company’s current timetable still places the start of production at the end of 2027.
