Albania has authorized its state-owned company KAYO to produce and market weapons, ammunition, and military equipment as part of efforts to expand its domestic defense industry.
The Council of Ministers approved the decision allowing KAYO to carry out production and sales directly or through its subsidiaries, supplying both domestic defense institutions and other state entities, according to a report by local outlet CNA.
All security and defense structures are now required to approach KAYO first for equipment and materials before launching public tenders.
If the company cannot meet requests within 30 days, authorities may proceed with normal procurement procedures.
Once ready to supply, KAYO and the requesting agencies are allowed to negotiate directly to finalize the deal.
Defense Production Developments in Albania
Albania has recently moved to revive its defense manufacturing sector after years of dormancy.
In 2024, the government advanced plans to modernize communist-era munitions factories in Polican to restart limited ammunition production. It sought foreign investment to improve facilities for small arms and light weapons.
In addition, Tirana signed an agreement with NATO’s Support and Procurement Agency to upgrade storage and logistics sites for ammunition and equipment, aligning them with alliance standards.
The Ministry of Defence also announced plans to rehabilitate the Gramsh weapons plant, formerly known for producing Kalashnikov rifles during the communist era, to support maintenance and assembly of modern rifles and components.
