Fincantieri and KAYO have launched a new shipbuilding partnership aimed at constructing 10 naval vessels by 2030, supporting efforts to revive Albania’s domestic naval manufacturing sector.
The agreement was signed in Tirana in the presence of Prime Minister Edi Rama and Defense Minister Ermal Nufi, creating a joint venture owned 51 percent by Italy’s Fincantieri and 49 percent by Albania’s state-owned KAYO.
The partnership will focus on the construction and maintenance of ships for the Albanian Navy while also targeting export opportunities in the offshore patrol vessel market.
Under the arrangement, the joint venture will act as the primary contractor for Albania’s naval programs, overseeing project execution and supply chains. For export contracts involving naval vessels under 80 meters (262 feet), Fincantieri will remain the lead contractor, with the Pashaliman shipyard near Vlora serving as the main production hub.
The deal builds on two memoranda of understanding signed in 2025 that laid the foundation for expanded cooperation between Fincantieri and Albania’s defense industry.
Albania’s Expanding Defense Cooperation
In recent years, Albania has strengthened defense ties across Europe and within NATO, placing greater focus on procurement, military training, and interoperability.
In December 2025, Albania, Kosovo, and Croatia agreed to jointly develop and manufacture the Shota mine-resistant ambush-protected vehicle.
The initiative followed an August 2025 trilateral agreement designed to improve regional security cooperation and deepen military integration.
That agreement also introduced a framework for coordinated defense procurement through joint acquisitions rather than separate national purchases.
