Fincantieri and KAYO Establish Naval Joint Venture in Albania

New Naval Joint Venture Formed

Italian shipbuilding company Fincantieri and Albanian state-owned defense and security firm KAYO have officially established a naval joint venture in Albania. The foundational Memorandum of Understanding (MoU) for this collaboration was signed on November 13, 2025, during the Italy–Albania Intergovernmental Summit held in Rome. This strategic partnership is set to significantly boost Albania's naval industrial capabilities and strengthen defense cooperation in the Adriatic region.

Details of the Agreement

The newly formed joint venture will serve as the prime contractor for shipbuilding and maintenance projects specifically for the Albanian naval sector. For international contracts, the JV is authorized to construct vessels up to 80 meters long and 800 tons in displacement. In these export-oriented projects, Fincantieri will assume the role of overall prime contractor, with construction carried out in Albania by the joint venture.

Under the terms of the agreement, KAYO will contribute the Pashaliman Shipyard in Vlorë, investing in its modernization and expansion. Fincantieri, a global leader in shipbuilding, will provide crucial technical expertise, comprehensive workforce training, engineering support, and essential material packages. This arrangement solidifies Fincantieri's position as a strategic technology partner in the region's naval industrial growth.

Strategic Importance and Leadership

The signing ceremony in Rome was attended by high-level officials, including Italian Prime Minister Giorgia Meloni and Albanian Prime Minister Edi Rama. Representing the companies were Fincantieri CEO Pierroberto Folgiero and KAYO CEO Ardi Veliu. Folgiero emphasized the significance of the agreement, stating, 'This agreement marks an important step in the collaboration between Italy and Albania. By combining our strengths, we're creating a project that strengthens the naval defense supply chain, supports economic and infrastructure development, and opens new international opportunities.'

This initiative expands Fincantieri's presence in the Adriatic region and underscores the growing cooperation between Italy and Albania in defense shipbuilding and industrial capability development. KAYO, established in 2024, is an Albanian state-owned company focused on revitalizing the country's military industry. This latest agreement follows an earlier Memorandum of Understanding signed on April 8, 2025, which aimed to explore the development of Albania's maritime industry and strengthen capacities at the Pashaliman Naval Base.

Future Outlook

The joint venture is expected to not only meet the needs of the Albanian Armed Forces but also pursue production for third countries, as highlighted by Albanian Minister of Defense Pirro Vengu. This move is anticipated to create qualitative and comprehensive employment opportunities and further integrate Albania into regional and global defense markets.