Italian shipbuilder Fincantieri and Tirana’s state-owned defense company KAYO have signed a memorandum of understanding to create a joint venture focused on constructing and sustaining naval vessels in Albania.
The deal was announced during the Italy-Albania Intergovernmental Summit in Rome, chaired by Italian Prime Minister Giorgia Meloni and Albanian counterpart Edi Rama.
The venture will manage shipbuilding and repair projects for the Albanian Navy and could also construct export vessels of up to 80 meters long (262 feet) and 800 tons (725,748 kilograms), with Fincantieri overseeing the overall project while KAYO handles construction in Albania.
KAYO will dedicate its Pashaliman shipyard in Vlorë as part of this cooperation and invest in updating its infrastructure, while Fincantieri will supply technical expertise, training, and materials to expand production.
“By combining our expertise and resources, we are launching a project that strengthens the military naval supply chain, fosters economic and infrastructural development, and opens new prospects for international growth,” Fincantieri CEO Pierroberto Folgiero stated.
“It is a tangible example of how synergy between companies and countries can generate value, security, and future.”
Deeper Cooperation in Defense, Civil Security
Albanian Defense Minister Pirro Vengu said the recent summit produced 16 agreements across multiple sectors, eight of which focused on defense, military industry, and civil protection, according to local media.
Part of these deals is KAYO’s partnership with another defense giant, Leonardo, on cybersecurity and other unspecified military technology works.
Albanian state-owned news agency Radio Televizioni Shqiptar reported that Italy will also transfer patrol boats to the Albanian Coast Guard, boosting maritime law enforcement, search and rescue operations, and fisheries protection across the Adriatic and Ionian seas.
Simultaneously, Rome will assist Tirana in modernizing its civil protection capabilities, including early warning systems, emergency response training, and implementation of the European emergency number 112.
Financial measures include a 30-million-euro ($34.7 million) loan for equipment and modernization and a 5-million-euro ($5.7 million) grant for rapid response and risk reduction.
