Denmark to guarantee €100m EIFO loan for Fire Point’s Danish subsidiary

The Danish government will provide Ukrainian drone and missile maker Fire Point with a state guarantee on a loan of 750 million Danish kroner (€100m). Reuters reported this on 21 October, citing a statement from the Danish government. The loan will go to Fire Point’s Danish subsidiary.

The Danish export and investment fund EIFO will channel the financing. According to Reuters, the state guarantee was needed because the war in Ukraine prevents Fire Point from borrowing in Denmark on ordinary market terms.

Reuters does not say that the money will go towards building Fire Point’s plant in Denmark. However, Danish Defence Minister Jeppe Bruus said that locating production abroad helps Ukraine protect its supply chain from Russian strikes.

Fire Point is building a solid rocket fuel plant in Denmark. Production will be located in Vojens in the south of the country, near Skrydstrup Air Base. The plant was planned to launch in 2026, but in August Fire Point CEO Iryna Terekh said the launch was postponed to the end of 2027.

The reason is that the earlier-acquired building does not meet safety requirements for producing solid rocket fuel, so the company will have to build a new facility. Meanwhile, the estimated cost of the project has risen from €50 million to more than €150 million.

Reuters also notes that Fire Point has signed agreements with more than a dozen European defence companies for radars, guidance systems, and other components for the Freyja missile defence project, which is meant to give Ukraine an alternative to the US-made Patriot system.