Fincantieri and Albania’s state-owned defense company KAYO have formalized a new strategic partnership aimed at expanding naval shipbuilding capabilities within Albania. The memorandum of understanding, signed during the Italy–Albania Intergovernmental Summit in Rome, outlines plans for a joint venture that will construct and support naval vessels for the Albanian Navy. The venture may also produce export ships up to 80 meters long and 800 tons, with Fincantieri leading project oversight while KAYO manages in-country assembly.
KAYO will commit its Pashaliman shipyard in Vlorë to the project and invest in upgrading facilities to meet modern shipbuilding standards. Fincantieri will provide engineering support, workforce training, and essential materials, strengthening Albania’s maritime industrial base. The collaboration is positioned as a major step in elevating the country’s shipbuilding capacity and reinforcing regional defense ties.
According to Albanian Defense Minister Pirro Vengu, the intergovernmental summit resulted in 16 new agreements, half of which focused on defense manufacturing, cybersecurity, and civil protection cooperation. Among them is a new partnership between KAYO and Leonardo to advance cybersecurity solutions and undisclosed military technologies, underscoring Albania’s broader push toward defense modernization.
Italy also committed to supplying patrol vessels to enhance Albania’s Coast Guard fleet, supporting maritime safety, border control, and rescue operations in the Adriatic and Ionian regions. The two governments agreed to expand cooperation in civil protection, with Italy assisting in emergency-response training, early-warning infrastructure, and national alignment with EU emergency number 112 standards. The package includes a €30 million loan for modernization programs and a €5 million grant dedicated to disaster-response readiness.
