Denmark to back $113M loan for Ukrainian Fire Point's rocket-fuel plant in Jutland
Denmark's state export and investment fund EIFO will provide financing with a state guarantee covering a roughly $112.6–113 million loan for a Danish subsidiary of Ukrainian defense company Fire Point. The money funds a solid rocket-fuel factory in South Jutland that is scheduled to begin production by the end of 2027 and is intended to feed long-range missiles, with the site chosen to shield the supply chain from Russian strikes.
Key points
- Denmark's EIFO fund will finance a roughly $112.6–113 million loan backed by a Danish state guarantee for a Fire Point subsidiary.
- Fire Point is building a solid-fuel rocket production facility in South Jutland, Denmark, scheduled to begin production by the end of 2027.
- Fire Point raised its investment estimate for the Danish plant from €50 million to €150 million after the originally planned building was deemed unsuitable.
- Fire Point became the first Ukrainian company to begin building a factory in Denmark.
- The plant is intended to produce fuel for long-range rockets; Danish Defense Minister Troels Lund Poulsen (rendered as «Єппе Бруус» in source material) said producing abroad lets Ukraine protect the supply chain from Russian attacks.
- Fire Point has also signed agreements with more than ten European defense companies to supply radars, guidance systems and other components for the Freyja air-defense project, which aims to provide a domestic alternative to the US Patriot system.
- Denmark activated a dedicated state-guarantee mechanism for defense investments in spring 2025 with €130 million set aside, and previously allocated 500 million kroner (about $80 million) to launch joint Ukrainian-weapons production.
Why it matters
Denmark is underwriting a nine-figure loan guarantee to host Ukrainian weapons production on NATO territory, relocating a supply chain outside the range of Russian strikes. The Fire Point plant is intended to supply solid fuel for long-range rockets and is part of a broader push to manufacture Ukrainian-designed weapons in Europe. Fire Point is also pursuing the Freyja air-defense project, which aims to give Ukraine a domestically produced alternative to the American Patriot system. Denmark has created a dedicated guarantee mechanism for defense investments and committed hundreds of millions of kroner and euros to underwriting Ukrainian arms production on Danish soil.
What happened
Denmark's state export and investment fund EIFO will provide financing with a Danish state guarantee covering a loan of roughly $112.6–113 million for a Danish subsidiary of Ukrainian defense company Fire Point. The funding supports a solid rocket-fuel factory Fire Point is building in South Jutland, scheduled to begin production by the end of 2027. Fire Point increased its estimate for the Danish plant from €50 million to €150 million after determining that the originally planned building did not meet requirements, and the company is now constructing a new facility. Fire Point operates in Denmark through a Danish-registered entity, and Danish authorities reviewed the financial, legal and corporate aspects before opening. The plant is intended to produce fuel for long-range rockets, and Danish Defense Minister Troels Lund Poulsen (rendered «Єппе Бруус» in source material) said that producing outside Ukraine lets the country shield the supply chain from Russian attacks. Fire Point has separately signed agreements with more than ten European defense companies to supply radars, guidance systems and other components for the Freyja air-defense project, which is intended to give Ukraine a domestically produced alternative to the US Patriot system.
How Ukrainian sources describe it
Ukrainian-language coverage, including Forbes Ukraine and Interfax-Ukraine, focuses on the size of the Danish state guarantee (around $113 million) and frames it as a major vote of confidence in a Ukrainian defense company and in Ukrainian-designed weapons being built abroad. Both outlets emphasize the protective logic cited by Denmark's defense minister: that producing outside Ukraine shields the supply chain from Russian strikes.
Where reporting differs
The sources differ on when Fire Point's Danish plant will actually begin producing solid rocket fuel. One report, citing Denmark, says Fire Point will start producing solid rocket fuel on Danish territory this past year, while other reports say the plant is scheduled to begin production only by the end of 2027. Forbes Ukraine and Interfax-Ukraine disagree on the timeline.
Background
A Danish mechanism for state guarantees on defense investments came into force in spring 2025, with €130 million earmarked for it, and the Danish Export and Investment Fund can cover up to 70% of a Danish company's investment in a Ukrainian partner. In June 2025, the defense ministers of Ukraine and Denmark signed a letter of intent on joint production of Ukrainian weapons in Denmark, and Denmark previously allocated 500 million kroner (roughly $80 million) to launch that effort. Fire Point, which signed agreements with more than ten European defense suppliers for the Freyja project, is the first Ukrainian company to start building a factory in Denmark, and its investment in the Danish plant tripled from an initial €50 million to €150 million after the originally planned building was deemed unsuitable.