Italian shipbuilder Fincantieri has partnered with Albania’s state-owned defense company KAYO, establishing a memorandum of understanding aimed at forming a joint venture focused on the construction and maintenance of naval vessels in Albania. This strategic collaboration was officially announced during the Italy-Albania Intergovernmental Summit held in Rome, which was chaired by Italian Prime Minister Giorgia Meloni and Albanian Prime Minister Edi Rama.
This new partnership is set to oversee shipbuilding and repair projects for the Albanian Navy. In addition to servicing domestic needs, the joint venture will have the capacity to construct export vessels measuring up to 80 meters (approximately 262 feet) in length and weighing up to 800 tons (725,748 kilograms). Under the terms of the agreement, Fincantieri will lead the overall project, while KAYO will be responsible for the construction processes within Albania.
KAYO has committed to dedicating its Pashaliman shipyard in Vlorë for this venture and plans to invest in upgrading its infrastructure to support enhanced operations. At the same time, Fincantieri is set to provide essential technical expertise, training, and materials to bolster production capabilities at the Albanian facility.
“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,” commented Fincantieri CEO Pierroberto Folgiero. He further emphasized the collaborative effort as a “tangible example of how synergy between companies and countries can generate value, security, and future.”
In addition to the shipbuilding agreement, the recent summit led to discussions that produced a total of 16 agreements spanning various sectors, with eight targeting the defense, military industry, and civil protection. As part of this broader initiative, KAYO is set to collaborate with another defense behemoth, Leonardo, on projects related to cybersecurity and other military technologies.
In a significant move to enhance maritime security, it has been reported that Italy will transfer patrol boats to the Albanian Coast Guard. This initiative is expected to augment Albania’s capabilities in maritime law enforcement, search and rescue operations, and the protection of fisheries across the Adriatic and Ionian seas.
Concurrently, Italy will assist Albania in modernizing its civil protection infrastructure, focusing on developing early warning systems, emergency response training, and implementation of the European emergency number 112. Financial measures accompanying these agreements include a €30 million (approximately $34.7 million) loan aimed at equipping and modernizing capabilities, alongside a €5 million (approximately $5.7 million) grant dedicated to swift response and risk reduction efforts.
