Fire Point plant in Denmark to launch a year later, project cost triples

Ukrainian defense company Fire Point has postponed the launch of its solid rocket fuel plant in Denmark to the end of 2027. Previously, the facility was expected to be commissioned by the end of 2026. At the same time, the cost of the project has more than tripled — from an initial €50 million to over €150 million.

Fire Point CEO Iryna Terekh announced the schedule change on August 19 at a defense industry conference in Herning, Denmark. The reason was construction difficulties: the company cannot use the previously acquired building for solid rocket fuel production and must build a new facility for the production.

Why the plant project had to be changed

According to Euractiv, Fire Point initially planned to adapt an existing building. However, it does not meet the safety requirements for solid rocket fuel production. The Danish Business Authority confirmed that the restrictions are safety-related, so the company needs to construct a new production facility.

The project revision led not only to a schedule shift but also to a sharp increase in investment. According to Terekh, the entire project was originally planned for about €50 million, while the new estimate exceeds €150 million. Thus, the budget has increased at least threefold.

The production site is being established near the town of Vojens in southern Denmark, close to Skrydstrup Air Base. The Danish government officially announced the location of the Fire Point facility there in September 2025. The plant is to produce solid rocket fuel for the Ukrainian defense industry.

Denmark accelerated the project but kept safety requirements

The Fire Point project became one of the first examples of relocating production of a Ukrainian defense company to a NATO country as part of deepening industrial cooperation between Ukraine and European partners. Danish authorities specifically accelerated administrative procedures so the facility could start operating sooner.

In November 2025, the Danish government issued a separate executive order allowing deviation from some standard administrative procedures for the facility's establishment. At that time, Fire Point still expected operations to begin during 2026. In December, construction work officially began on the site.

However, the accelerated procedure does not mean the elimination of basic safety standards. The Danish Business Authority notes that the facility must still obtain permits for storing explosives and meet requirements for the safe transportation of rocket fuel. The authorities also state they will continuously supervise the construction and future operation of the site.

The plant itself is owned by a Denmark-registered company that acquired the land and is responsible for construction. According to the Danish regulator, the facility is being built with the company's own funds, while the state has provided additional administrative resources for faster processing of necessary procedures.

Production planned for Ukrainian defense needs

Danish authorities originally explained the placement of Fire Point by the need to expand the production base of the Ukrainian defense sector outside Ukraine. Such production should be less vulnerable to Russian attacks and simultaneously create a foundation for cooperation between Ukrainian and European defense companies.

Fire Point plans to produce solid rocket fuel in Denmark primarily for its own needs, and in the future the company does not exclude supplies to other manufacturers. The Danish facility is part of Fire Point Rocket Technologies — a local subsidiary of the Ukrainian company.

The project is also expected to have a notable economic impact on the region. The Danish Business Authority previously estimated the number of future jobs in the hundreds. Local contractors and suppliers are expected to be involved in the construction and operation of the facility.

Despite the launch delay, Danish authorities and Fire Point have not abandoned the project. The new target foresees production beginning by the end of 2027. For the company, the Danish site remains part of its strategy to expand production outside Ukraine and reduce risks to the defense industry during the war.

Sources: Euractiv, Danish Ministry of Industry, Business and Financial Affairs, Danish Business Authority