Fincantieri and KAYO Launch Joint Venture to Build Naval Vessels in Albania

On 29 April 2026, Italian shipbuilder Fincantieri and Albanian firm KAYO signed a Joint Venture Agreement in Tirana. The venture, owned 51 % by Fincantieri and 49 % by KAYO, will operate from the Pashaliman naval base and will build and maintain vessels for the Albanian Navy.

Agenzia Nazionale Stampa Associata (ANSA)The Straits TimesFincantieri and Kayo sign agreement to establish Joint Venture in AlbaniaReutersAlbania signs agreement with Italy to produce naval vessels in Pashaliman

Albania, a NATO member since 2009, has a Mediterranean location that gives it strategic importance beyond its size, prompting fleet modernization. For Italy, the partnership expands Fincantieri’s Mediterranean footprint and opens a gateway to export markets.

Reuters

Based on two 2025 memoranda, the joint venture will create a shipyard at Pashaliman capable of building vessels up to 80 metres and 800 tonnes. The plan targets about ten units from 2026-2030, focusing on small- and medium-size offshore patrol vessels. Around 400 workers will be hired and €1.2 billion has been earmarked. Over 90 % of the projected client base is international.

Albania signs agreement with Italy to produce naval vessels in Pashaliman

Prime Minister Edi Rama called the deal a milestone for Albania’s security and economy, noting a new “centre of excellence” and training for young Albanians. Defence Minister Ermal Nufi said the venture will make Albania a European hub for Fincantieri’s small-to-medium vessels and cement a reliable industrial partnership. Fincantieri CEO Pierroberto Folgiero described the project as a strategic investment that will meet the navy’s needs while expanding Italy’s industrial presence in the region.

Albania signs agreement with Italy to produce naval vessels in PashalimanFincantieri and Kayo sign agreement to establish Joint Venture in AlbaniaReutersAgenzia Nazionale Stampa Associata (ANSA)The Straits Times

• “This partnership paves the way to produce naval vessels in Albania, not only for the country’s needs but also for export to international markets,” — Government statement, Albania

The Straits Times

• “This agreement creates a joint Italian-Albanian centre of excellence in the shipbuilding industry, bringing innovation and advanced technology to Albania. We will produce for our Armed Forces and for export, opening a new perspective for development.” — Prime Minister Edi Rama

Albania signs agreement with Italy to produce naval vessels in Pashaliman

• “Pierroberto Folgiero, CEO and Managing Director of Fincantieri, commented: “The joint venture between Fincantieri and KAYO represents a milestone in the framework of industrial and strategic cooperation between Italy and Albania, confirming the strength of a partnership built on shared interests and a long-term vision.” — Pierroberto Folgiero, CEO, Fincantieri

Fincantieri and Kayo sign agreement to establish Joint Venture in Albania

• “Fincantieri expands its production capacity in Albania, while KAYO positions itself as a reliable industrial partner within an international framework.” — Defence Minister Ermal Nufi

Albania signs agreement with Italy to produce naval vessels in Pashaliman

Fincantieri’s initial corporate release gave no financial details or start-date, while the Albanian Ministry later announced a €1.2 billion investment. The Prime Minister cited a target fleet of seven ships after the first two vessels, whereas the joint venture’s plan mentions ten units to be delivered by 2030. No source provided a definitive construction timeline.

Fincantieri and Kayo sign agreement to establish Joint Venture in Albania

The venture will start with two vessels for the Albanian Navy, then shift to export-oriented offshore patrol vessels. Training programmes with Italian experts will begin as the shipyard is commissioned. Observers will watch for the first deliveries, the activation of the €1.2 billion funding, and the ability to secure contracts in the competitive Mediterranean market.

Albania signs agreement with Italy to produce naval vessels in Pashaliman