Ukraine's Fire Point lands $113M Danish state-backed loan for missile-fuel plant
What's the deal? Ukrainian drone and missile maker Fire Point secured a 750 million-kroner (≈$113 million) state-guaranteed loan from Denmark to fund production at its subsidiary in southern Denmark. The financing runs through EIFO, Denmark's export and investment fund, and was announced in October 2026.
Why a guarantee? The Danish state is backing the loan because the war in Ukraine prevents Fire Point from borrowing on normal commercial terms, the Ministry of Industry, Business and Financial Affairs said.
What's the endgame? Fire Point is building a solid rocket-propellant plant in Vojens, near Skrydstrup Air Base, to fill FP-7 and FP-7.x missiles and boosters for its Flamingo cruise missile. Chief executive Iryna Terekh has said the site will exceed 120,000m², with capacity for 800 to more than 4,100 missiles a year. The fuel will serve Ukraine's forces during the war and later supply European partners.
The expansion: The deal advances an unusual arrangement struck in September 2025, when Denmark became the first NATO member to invite a Ukrainian defence firm to produce on its soil. Defence minister Jeppe Bruus said placing production abroad protects supply chains "from Russian attacks," as the war puts Ukrainian factories at risk.
What could go wrong? The project is already delayed. Production is now due by the end of 2027 — a year behind schedule — after construction ran long and safety requirements forced changes. Fire Point was granted waivers on more than 20 Danish rules, including environmental and planning laws, though it must eventually meet standard requirements.
The signal: At roughly $113 million, the loan ranks among the largest debt deals ever recorded for a security company tied to Ukraine — in the 99th percentile of comparable rounds. It marks a shift from buying Ukrainian arms to financing their manufacture on NATO soil, even as the delays show that money alone cannot clear the construction and regulatory hurdles slowing new European defence capacity.
Read more: defencenordic.com
Image credit: aeroman3
