A new partnership between Fincantieri and KAYO is set to deliver 10 naval vessels by 2030 as Albania seeks to rebuild its domestic shipbuilding capabilities.
Signed in Tirana with Prime Minister Edi Rama and Defense Minister Ermal Nufi in attendance, the agreement establishes a joint venture controlled by Fincantieri with a 51-percent stake, while Albania’s state-owned KAYO holds the remaining 49 percent.
The venture will support the Albanian Navy through ship construction and maintenance activities while also pursuing export business in the offshore patrol vessel sector.
As part of the agreement, the joint venture will oversee Albanian naval programs as the prime contractor, including supply chain management and project execution. For export-oriented projects involving naval vessels shorter than 80 meters, Fincantieri will continue serving as lead contractor, with production centered at the Pashaliman shipyard near Vlora.
The partnership expands on two memoranda of understanding signed in 2025 that strengthened cooperation between the Italian shipbuilder and Albania’s defense sector.
Regional Defense Collaboration
Albania has increasingly expanded defense cooperation with European partners and NATO allies, focusing on interoperability, procurement collaboration, and military training.
In December 2025, Albania joined Kosovo and Croatia in an agreement to co-develop and produce the Shota MRAP vehicle.
The move built upon a trilateral defense agreement signed in August 2025 aimed at boosting regional security coordination and improving force integration.
The framework also promoted joint weapons procurement programs in place of separate national acquisitions.
