Denmark will guarantee a $112.6 million loan to Fire Point’s Danish subsidiary, providing state-backed financing for a rocket-propellant plant whose production date has slipped by a year to late 2027.
Denmark’s Export and Investment Fund, or EIFO, is making the financing available because the war prevents the Ukrainian weapons maker from borrowing on ordinary Danish terms. The announcements did not disclose the interest rate, maturity or whether Fire Point has drawn the loan.
Fire Point makes long-range strike drones and cruise and ballistic missiles. Its operation near Vojens is being built to produce solid rocket propellant for Ukrainian defense, including the company’s Flamingo cruise missile.
Even with a special Danish law allowing the project to depart temporarily from more than 20 environmental and planning rules, safety requirements ruled out adapting an existing building. Fire Point must construct a new facility, pushing expected production to late 2027.
Locating propellant production outside Ukraine reduces its exposure to Russian attacks, Denmark’s defense minister said. Fire Point previously told the Associated Press that the Danish factory was intended to relieve a solid-propellant bottleneck for missiles including Flamingo.
The financing adds Danish state support while Fire Point remains under separate scrutiny in Ukraine. The Atlantic reported in July that anti-corruption investigators were reviewing pricing on some military drone contracts, while the company’s owners were not suspects. Ukraine’s Defense Ministry nevertheless concluded new 2026 procurement contracts for Fire Point’s unmanned systems, Interfax-Ukraine reported.