Two merchant vessels have been attacked by aerial and maritime drones in Bulgaria’s exclusive economic zone in the Black Sea, sinking one ship and forcing the evacuation of another. The incident follows a deadly attack on a grain carrier off Romania a day earlier and has prompted concern over the growing risks to civilian shipping close to EU and NATO territory.

Two commercial vessels were struck by drones in Bulgaria’s exclusive economic zone early on Tuesday, 6 October, in the first known attack of its kind on merchant shipping in Bulgarian waters.

The Togo-flagged ALFA WATAN suffered severe structural damage and sank, while the Palau-flagged ABLE caught fire. Bulgarian Prime Minister Rumen Radev said the vessels were attacked at around 3am by both aerial and maritime drones about 70 nautical miles east of the coastal town of Byala. The Bulgarian government said a search-and-rescue operation was continuing for the crew of the ALFA WATAN, whose fate remained unknown.

All 18 people aboard the ABLE were rescued after abandoning the burning vessel. The Bulgarian-flagged passenger and freight ferry DIOSCURIA was diverted to the area and initially took the crew on board before Bulgarian Navy and Border Police vessels transferred them towards Varna.

The crew comprised 11 Turkish and seven Indian nationals. Two sailors were taken to hospital, including an Indian crew member suffering from burns and the Turkish captain, who sustained a head injury. Bulgarian public broadcaster BNT reported that the remaining 16 sailors subsequently arrived safely in Varna for medical checks.

The ABLE was reportedly carrying grain towards Istanbul. The cargo aboard the ALFA WATAN, which had been heading north towards Romania, has not been officially established.

Radev convened an emergency meeting involving the ministries of defence, interior, transport and environment, alongside the presidency and Bulgaria’s security services. He described the attack as an unacceptable violation of international and maritime law and warned of its effect on commercial navigation in the Black Sea.

Bulgarian authorities have not publicly identified who launched the drones. Investigations are examining both the weapons used and the circumstances surrounding the attack. One rescued Turkish sailor told Bulgarian television that he believed the ABLE had been hit by a Russian underwater drone, but that account has not been independently established and Sofia has made no formal attribution.

Foreign Minister Velislava Petrova said Bulgaria was in contact with its European and NATO partners and described Black Sea security as inseparable from wider European security. She said civilian crews and freedom of navigation must be protected and that Bulgaria would work with its allies to assess the wider consequences for maritime security.

European Commission President Ursula von der Leyen also condemned attacks against civilian shipping, saying the situation in the Black Sea was becoming increasingly concerning. She said commercial vessels and their crews were being targeted as investigations continued into the latest incidents.

Tuesday’s attack came less than 24 hours after another commercial vessel caught fire and sank in Romania’s exclusive economic zone. The Turkish-owned Royad Mammadov, sailing under the flag of Saint Kitts and Nevis, had left the Ukrainian Danube port of Izmail carrying corn for Ravenna in Italy.

Romanian authorities confirmed that two people died and 11 crew members were rescued. President Volodymyr Zelenskyy said the vessel had been struck by two Russian drones, although Romanian authorities did not themselves publicly attribute the incident to Russia.

The two incidents in consecutive days mark a further geographical expansion of the risks facing commercial shipping in the western Black Sea. EU Today has previously reported how strikes near Romania have moved maritime war risks closer to NATO territory, while a separate maritime drone explosion at Constanța raised questions over the ability of coastal states to detect and respond to unmanned systems approaching commercial infrastructure.

The distinction between territorial waters and an exclusive economic zone remains important. The attacks occurred outside Bulgaria’s territorial sea and therefore do not amount simply to an attack on Bulgarian territory. They nevertheless took place in an area where Bulgaria has internationally recognised economic rights and responsibilities, including search-and-rescue and environmental obligations.

The immediate concern for Sofia is the search for the missing crew of the ALFA WATAN and the possibility of pollution from the wreck. The wider concern for the EU is the increasingly exposed position of civilian shipping routes linking Ukraine, Romania, Bulgaria and Turkey.

Ukraine’s maritime export routes remain particularly important for agricultural trade. Repeated attacks on merchant vessels can increase insurance premiums, discourage shipowners from entering the region and raise transport costs even when ports themselves remain operational. Russian attacks on Odesa and its export infrastructure have already placed Ukraine’s Black Sea grain corridor under sustained pressure.

With merchant ships now struck in the economic zones of both Romania and Bulgaria on consecutive days, Black Sea maritime security has moved further onto the agenda of EU and NATO governments along the western coast.

As part of its overall effort to boost America’s flagging shipbuilding capacity, the Trump administration on Tuesday announced that Anduril is building a new two-million-square-foot facility in Baltimore designed to help speed up the production of Virginia class nuclear-powered attack submarines. The plant, dubbed Arsenal-2, will eventually produce components like torpedo tubes and spherical air flasks, which will then be sent to the two shipyards that build nuclear submarines, General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding. Anduril’s plan to build complex submarine components is a huge leap for a company with a shipbuilding portfolio consisting of a limited number of smaller craft.

The submarine component plant announcement was made as the Navy is struggling to keep up with its goal of producing two of these boats per year amid a wider issue of construction and delivery delays across the service. However, it will be years before the first Anduril-produced components are placed on a submarine, with no specific timelines for that effort yet established, an industry official told us. We will discuss that in greater detail later in this story.

“Today’s $6.6 billion investment represents the president’s commitment to restoring American maritime dominance by constructing new vessels in communities like Baltimore and across the country,” White House spokesperson Anna Kelly told a group of reporters, including from TWZ, at a Tuesday morning press conference.

Those funds include a $3.7 billion investment from Anduril to build and staff the new facility, and a contract worth up to $2.9 billion awarded to Anduril by the Navy to produce the components.

“The Virginia class submarine program is one of the most critical warfighting capabilities that our nation has that guarantees deterrence every single day,” Anduril President and Chief Strategy Officer Chris Brose stated. “It is also a program that has been challenged in terms of the ability to meet the Navy’s requirements. So we’re, as a nation, not necessarily where we need to be, and that’s not because of our shipyard workers.”

The Navy currently has 26 Virginia class boats, with two more expected to be commissioned next spring, a senior administration official told reporters on Tuesday. Another 31 vessels are still needed to meet the Navy’s overall plan to have 59 Virginia class boats.

However, while the Navy has been buying them at a rate of two per year from Fiscal Year 2011 through Fiscal Year 2024, “the actual Virginia class production rate has never reached 2.0 boats per year, and since 2022 has been limited by shipyard and supplier firm workforce and supply chain challenges to about 1.1 to 1.2 boats per year, resulting in a growing backlog of boats procured but not yet built,” according to a Congressional Research Service (CRS) report published in January. “Key drivers of the drop in production include workforce challenges, first-time quality, material and supplier delays, and lead ship issues associated with the Virginia Payload Module [VPM] variant. The Navy is working closely with the shipbuilders to drive improvement throughout the Virginia enterprise.”

The VPM is an 84-foot hull extension that contains four additional large vertical tubes designed to launch Tomahawk land-attack cruise missiles, Intermediate-Range Conventional Prompt Strike (IRCPS) hypersonic missiles, and other payloads. You can read more about the Navy’s VPM plans in our story here.

Adding to the strain on production and delivery, Australia is set to get one new-build Virginia class boat and two from the U.S. Navy’s fleet under the 2021 trilateral AUKUS nuclear submarine acquisition deal with the United States and the United Kingdom.

In May, Chief of Naval Operations Adm. Daryl Caudle told Congress that the service would meet its two-boat-a-year delivery rate by 2032.

During Tuesday’s press conference, officials laid out claims that the new Anduril plant will address several of the issues that have slowed down the construction and delivery of these submarines.

“If you look at this in terms of capacity, the potential based on the area and what Anduril plans to do is to add about 9 million hours of labor a year at this facility,” stated a senior administration official, who, like others on Tuesday spoke on condition of anonymity. “That would be the equivalent of about a 15% increase, and so that would be directly translatable to Virginia class submarine production. So having those torpedo tubes earlier would let us move production of current Virginia submarines under construction faster.”

In addition, Anduril plans to draw on a huge potential workforce to staff the plant.

“If you basically draw like a one-hour radius around the Baltimore County area, there are millions and millions of people who could potentially contribute and work at this shipyard, and that is a huge selling point for us,” an industry official suggested.

Beyond producing components like torpedo tubes, Anduril aspires to eventually build “full ship sections, bows, sterns, etc.” at Arsenal-2, the industry official added.

Anduril said Arsenal-2 will be “purpose-built” for the “high-volume, high-precision production of undersea naval capabilities.”

“The shipyard’s layout is optimized for production,” the company stated in a media release. “Reduced distances between fabrication, assembly, testing, and integration areas eliminate the staging bottlenecks that slow conventional yards.”

“A functional 1,200-foot graving dock and multimodal road and rail access support large-scale component movement,” Anduril added. “High-bay assembly halls, adjacent fabrication areas, and reconfigurable production lines allow the yard to shift rapidly as Navy requirements evolve.”

ArsenalOS, Anduril’s industrial software platform, “will provide the digital backbone for the yard and its production systems,” the company further pointed out. “It will connect fabrication workflows, outfitting sequences, material movement, inspection protocols, and documentation requirements in a single system, giving workers and managers real-time visibility into the state of production. Digital work instructions, embedded quality controls, modern sensing, and automation will support the expertise of welders, pipefitters, electricians, shipfitters, inspectors, and other skilled trades.”

Anduril claims the project “will create 3,100 direct jobs and support more than 11,000 indirect jobs. The site will drive $2 billion in annual economic output, including an estimated $312 million in wages each year.”

Before Arsenal-2 is up and running, Anduril said it plans to “manufacture critical Virginia class submarine components at a new 160,000-square-foot facility in Orange County, California, purpose-built to support key submarine construction processes and SUBSAFE-qualified production qualification [efforts].”

The Orange County facility will give Anduril “a two-year operational head start to develop and validate manufacturing methods, production workflows, and quality systems before  Arsenal-2 comes online,” the company noted. “It will support prototyping and production of Virginia-class test assets and critical maritime components, including torpedo tubes, while allowing Anduril to recruit and train the early workforce on the systems and standards that will ultimately scale at Arsenal-2. Once Arsenal-2 comes online, the Orange County facility will continue supporting broader maritime manufacturing efforts across Anduril’s industrial network.”

As we noted earlier in this piece, it will be years before anything produced by Anduril winds up on a sub. In addition to recruiting and training a workforce to build the components and ensuring the production system can meet goals, the parts then have to be tested to ensure they are safe enough to place on boats.

The industry official told TWZ that there is no schedule yet for when that will happen.

“We are starting this work now,” the industry official said. “We’re going to be working quickly. There’s a lot we’re going to have to do to prove the ability to produce the initial components – the torpedo tubes. We’re going to have to work with our partners in industry and partners in government on the certification. So it’s really not possible to put a time stamp on it as much as I’d like to.”

“I think our goal, and I know this is shared by the administration, is to go as fast as possible while keeping the bar of safety as high as it needs to be, and try to get these systems certified so that they go into the production of boats… and solve the critical limiting factor currently in our supply chain, and help our industry partners produce more submarines.”

Arsenal-2 follows the development of Anduril’s Arsenal-1 plant in Ohio, first announced two years ago. That five-million-square-foot facility, once fully up and running, will be able to “produce tens of thousands of autonomous weapons systems addressing the urgent needs of the United States and our allies,” the company said at the time.

Arsenal-1, however, remains a work in progress, with more construction work yet to be done. Still, Anduril’s first product from that plant, the U.S. Air Force’s Collaborative Combat Aircraft (CCA) known as the YFQ-44A Fury, rolled off the assembly line there in July. That milestone met the company’s initial production schedule announced in January 2025, according to JobsOhio, the state’s business development arm.

Anduril, which also produces systems like the Ghost Shark extra-large autonomous undersea vehicle (in partnership with Australia), the Roadrunner reusable missile-like air vehicle, the Iris family of passive infrared sensors, and a wide range of other items, is playing a growing role in the Trump administration’s weapons development efforts.

Last month, Defense Secretary Pete Hegseth announced that Anduril co-founder Palmer Luckey, who made a name for himself and his fortune in the virtual reality space with Meta, will help lead a new program dubbed Project Meridian. The goal, according to a Pentagon memo, is to “map the trajectory of future warfare, identify critical capability gaps, and propose actionable solutions in furtherance of the identified goals in the 2026 National Security Science and Technology Strategy.”

The Pentagon’s Chief Technology Officer, Emil Michael, has been directed to set up this project. SpaceX founder Elon Musk and Newt Gingrich are other key members.

From our story about Project Meridian and the Pentagon’s overall effort to boost its autonomous warfare capabilities:

“The inclusion of Musk and Luckey does raise ethical questions, as they both lead companies with major U.S. government contracts already, and which could be in line to see more opportunities based on Project Meridian’s findings. What guardrails might be put in place to prevent conflicts of interest is unclear.”

Regardless of any such concerns, today’s shipyard announcement is a clear indication that the Trump administration and the Pentagon see Anduril as a major player across its weapons manufacturing industrial base. It’s also a reminder of just how challenging it is to actually expand America’s ability to build fighting vessels.

Contact the author: howard@twz.com

The post Anduril Dives Into Submarine Construction With New Baltimore Plant appeared first on TWZ.

The crew of a merchant ship was missing on Tuesday after the vessel sank in the Black Sea off NATO member Bulgaria following a drone strike that Prime Minister Rumen Radev described as a gross violation of international law.