Italian shipbuilder Fincantieri and Albania’s state-owned defense firm KAYO have signed an MoU to establish a joint venture dedicated to building and maintaining naval vessels in Albania.
Announced during the Italy–Albania Intergovernmental Summit in Rome—chaired by Italian Prime Minister Giorgia Meloni and Albanian Prime Minister Edi Rama—the partnership will support ship construction and repair for the Albanian Navy and may also produce export vessels up to 80 meters long and 800 tons. Fincantieri will lead the project, while KAYO will conduct construction work at its upgraded Pashaliman shipyard in Vlorë.
As part of broader bilateral cooperation, Albanian Defense Minister Pirro Vengu said the summit delivered 16 agreements, including eight related to defense, military industry, and civil protection. KAYO also signed a separate collaboration with Leonardo covering cybersecurity and other military technology initiatives.
State media reported that Italy will transfer patrol vessels to strengthen Albania’s Coast Guard operations across the Adriatic and Ionian seas. Rome will additionally support Albania in enhancing civil protection, early warning systems, emergency response training, and deployment of the EU emergency number 112.
Financial support includes a €30 million loan for equipment and modernization and a €5 million grant for rapid response and risk-reduction programs.
