Denmark to provide US$113 million loan guarantee to Fire Point

The Danish government will provide a loan guarantee of 750 million Danish kroner (US$112.6 million) for the Danish subsidiary of Ukrainian missile and drone manufacturer Fire Point.

Source: Reuters; a press release from Denmark's Ministry of Industry, Business and Financial Affairs

Details: According to the ministry, funding for Fire Point's subsidiary will be provided through the Export and Investment Fund of Denmark (EIFO).

"The loan is backed by a Danish state guarantee because the war in Ukraine makes it difficult for Fire Point to secure a loan in Denmark on standard commercial terms," the press release said.

A plant producing solid rocket propellant is being built in Southern Jutland, near Skrydstrup Air Base. The facility is expected to become operational by the end of 2027.

Danish Defence Minister Jeppe Bruus stressed the importance of protecting Ukrainian defence industry production from Russian strikes. He said establishing production facilities abroad would allow Ukraine to secure critical supply chains.

"To defend Ukraine, it is crucial to have broader access to essential defence equipment and technology through reliable supply chains. Locating parts of Ukraine's defence industry outside the country offers substantial protection against Russian attacks," Bruus said.

Martin Lidegaard, Denmark's Minister for Industry, Business and Financial Affairs, added that Denmark remains steadfast in its support for Ukrainians' fight for freedom.

"With a Ukrainian defence company operating on Danish soil, we are gaining the knowledge, production capacity and partnerships that will help Ukraine win, strengthen the Danish defence industry and make Europe stronger and more independent," Lidegaard said.

Meanwhile, Fire Point has signed agreements with more than a dozen European defence companies to supply radars, guidance systems and other components for the Freyja anti-missile defence system. The project aims to provide Ukraine's defence forces with a domestically developed alternative to the US-made Patriot missile defence systems.

Background:

• In spring 2025, Denmark launched an investment guarantee scheme through the state-owned EIFO fund, covering up to 70% of capital investments by Danish companies investments in joint defence projects with Ukraine.
• In September 2025, the Danish authorities announced that the Ukrainian weapons developer would build a rocket fuel plant in Southern Jutland. Denmark became the first NATO country to agree to host production lines belonging to Ukraine's defence industry on its territory.
• In July 2026, Ukraine and nine other European countries formed a coalition in Paris to develop anti-ballistic missile capabilities. The Freyja surface-to-air missile system, led by Fire Point engineers, is a key element of the initiative.
• In August 2026, Fire Point signed contracts with European partners to supply components for a new interception system and increased the planned budget for the Danish plant to €150 million.

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