Fincantieri and KAYO have signed a Joint Venture Agreement to establish a new industrial partnership dedicated to the construction and maintenance of naval vessels in Albania. The agreement marks an important step in the development of Albania’s naval shipbuilding capabilities and strengthens industrial cooperation between Italy and Albania in the defence sector.

KAYO is a company specialising in the development of strategic industrial infrastructure and is controlled by the Albanian Ministry of Defence. The agreement with Fincantieri, one of the world’s leading shipbuilding groups, follows two Memoranda of Understanding signed in 2025, which were aimed at assessing and defining a long-term strategic industrial partnership between the two sides.

The signing ceremony took place in Tirana in the presence of the Prime Minister of Albania, Edi Rama, and the Albanian Minister of Defence, Ermal Nufi. The agreement was signed by Pierroberto Folgiero, CEO and Managing Director of Fincantieri, and Ardi Veliu, CEO of KAYO. Also present were Marco Alberti, Ambassador of Italy in Tirana, and Eugenio Santagata, General Manager of Fincantieri’s Naval Vessels Division.

The new joint venture will be owned 51% by Fincantieri and 49% by KAYO. Its main mission will be to support the construction and maintenance of naval units for the Albanian Navy. At the same time, the company will also pursue commercial opportunities in international markets, particularly in the small and medium-sized Offshore Patrol Vessel segment.

In the Albanian domestic market, the joint venture will operate as prime contractor for naval programmes, taking full responsibility for programme execution and supply management. For export activities, Fincantieri will retain the role of prime contractor for naval units below 80 metres in length, while designating the Pashaliman shipyard as the preferred production site.

A central element of the initiative is the revitalisation and modernisation of the Pashaliman shipyard, located near the city of Vlora. Through this project, Albania is expected to develop a more advanced and efficient naval shipbuilding infrastructure, capable of supporting national defence requirements and contributing to broader regional industrial capacity.

The industrial plan foresees a target of approximately 10 naval units during the 2026–2030 period. This projection is aligned with the expected demand for small and medium-sized Offshore Patrol Vessels, a segment increasingly relevant for maritime security, coastal surveillance, border protection and naval presence missions.

Pierroberto Folgiero stated that the joint venture represents a milestone in industrial and strategic cooperation between Italy and Albania. He described the initiative as a strategic investment aimed at creating a production hub in Albania, supporting the operational needs of the Albanian Navy and enabling future commercial opportunities in international markets.

The agreement also reinforces Fincantieri’s position as a key industrial player in the Mediterranean naval sector. For Albania, the partnership offers the opportunity to upgrade national shipbuilding infrastructure, strengthen sovereign naval capabilities and develop a platform with potential export value.

The incorporation of the joint venture remains subject to customary closing conditions.