Italian shipbuilder Fincantieri and Albania’s state-owned defense firm KAYO have signed a memorandum of understanding to establish a joint venture dedicated to building and maintaining naval vessels in Albania. The announcement was made during the Italy–Albania Intergovernmental Summit in Rome, led by Italian Prime Minister Giorgia Meloni and Albanian Prime Minister Edi Rama. The partnership aims to support the Albanian Navy while opening opportunities to manufacture export-oriented vessels up to 80 meters in length and 800 tons in displacement.
Under the agreement, Fincantieri will oversee the overall program, providing technical guidance, materials, and specialized training. KAYO, meanwhile, will conduct construction activities inside Albania using its Pashaliman shipyard in Vlorë, which will undergo infrastructure upgrades to expand production capacity. The joint venture is expected to boost Albania’s domestic naval industry and deepen bilateral industrial cooperation.
The summit also yielded broader defense and security commitments. Albanian Defense Minister Pirro Vengu noted that 16 agreements were finalized, including eight covering military industry, defense cooperation, and civil protection initiatives. As part of the broader collaboration, KAYO will also partner with Leonardo on cybersecurity and other classified defense technologies, strengthening Albania’s technological resilience.
Italy additionally plans to transfer new patrol boats to Albania’s Coast Guard, improving maritime surveillance, fisheries protection, and search-and-rescue operations across the Adriatic and Ionian Seas. Rome will further assist in upgrading Albania’s civil protection infrastructure, including emergency training, early warning systems, and rollout support for the European emergency number 112. Financial backing includes a €30-million loan for modernization and a €5-million grant for rapid-response and risk-reduction initiatives.
