Denmark Backs Fire Point With DKK 750m Loan Guarantee

The war that Fire Point arms Ukraine for is also the reason it cannot get a normal bank loan in Denmark. So the Danish state is stepping in. The government will guarantee a loan of DKK 750m to the Danish subsidiary of the Ukrainian defence company, the Ministry of Industry, Business and Financial Affairs said on 21 October. Reuters put the sum at about $112.6m.

The guarantee is meant to move Fire Point’s Danish project closer to production. The ministry says the state is backing the loan because the war in Ukraine stands in the way of Fire Point borrowing on ordinary terms in Denmark. Financing will run through EIFO, the Danish Export and Investment Fund.

The plant will make fuel for long-range missiles

Denmark invited Fire Point to set up in southern Jutland last year, according to the ministry. Reuters reported that the plant will produce fuel for long-range missiles and is set to be up and running by the end of 2027. Fire Point broke ground on the factory in Vojens on 1 December 2025, according to a photo caption published by NordicDefenceWatch.

The ministry gave no details of the loan’s term, lender or interest rate, and no figures for the plant’s capacity or jobs.

Ministers frame it as protecting production from Russian attack

Defence Minister Jeppe Bruus said Denmark had been the first country to decide to allow a Ukrainian defence company to set up on its soil. “When Denmark supports the Ukrainian defence industry, the fighting strength of Ukraine’s defence increases,” he said, in TSN’s translation from Danish. “When Ukrainian defence industry is established outside Ukraine, production is better protected from Russian attacks.”

Bruus added that Fire Point’s presence strengthens the chances of working with Denmark’s armed forces and Danish companies, so that Denmark can gain access to technologies and experience developed under wartime conditions.

Business Minister Martin Lidegaard said that with a Ukrainian defence company on Danish soil, “we gain knowledge, production and partnerships”, in TSN’s translation, so that the Danish defence industry is strengthened and “Europe can stand stronger and more independent”.

EIFO says it is behind almost 40 Ukraine projects

Peder Lundquist, chief executive of EIFO, said the fund is currently involved in almost 40 projects that help Ukraine and build cooperation between Ukrainian and Danish companies. “The financing for Fire Point is a concrete example of how that effort can be expressed,” he said, in TSN’s translation.

Fire Point has also signed agreements with more than a dozen European defence companies for radar, guidance and other systems for its Freyja missile defence project, Reuters reported. The next date to watch is the end of 2027, when the Vojens plant is due to start production.