A new shipbuilding partnership between Fincantieri and KAYO is targeting the construction of 10 naval vessels by 2030, marking a push to rebuild Albania’s domestic naval production base.
The agreement, signed in Tirana in the presence of Prime Minister Edi Rama and Defense Minister Ermal Nufi, establishes a joint venture 51 percent owned by Italy’s Fincantieri and 49 percent by Albania’s state-owned KAYO.
It will focus on building and maintaining naval vessels for the Albanian Navy while also pursuing export opportunities in the offshore patrol vessel segment.
The joint venture will serve as prime contractor for Albanian naval programs, managing execution and supply chains. For export work, Fincantieri will remain the lead contractor for smaller naval units under 80 meters (262 feet), with the Pashaliman shipyard near Vlora designated as the main production site.
The agreement follows two memoranda of understanding signed in 2025, which set the groundwork for deeper cooperation between the Italian shipbuilder and Albania’s defense industry.
Albania’s Defense Partnerships
Albania has broadened its defense cooperation across Europe and within NATO frameworks in recent years, with increased emphasis on training, procurement, and interoperability.
In December 2025, Kosovo, Albania, and Croatia agreed to jointly develop and produce the Shota mine-resistant ambush-protected vehicle.
This builds on an August 2025 trilateral agreement aimed at enhancing regional security and strengthening force integration.
It also established a framework for coordinated weapons procurement through joint orders instead of separate national acquisitions.
