Italian Shipbuilder Fincantieri and Albanian KAYO Form Joint Venture to Build Naval Vessels

On 29 April 2026, Italian shipbuilder Fincantieri and Albania’s state-controlled firm KAYO signed a joint-venture agreement to construct and service naval vessels in Albania. The signing ceremony was attended by the Albanian prime minister, defence minister Ermal Nufi, and the CEOs of both companies. The deal enables Albania to build its own fleet and gives Fincantieri export potential. The agreement was signed in Tirana.

The Straits TimesReuters

Albania has been a NATO member since 2009. Its location on the Mediterranean Sea gives it strategic relevance that exceeds its geographic size, prompting efforts to modernise its military infrastructure and reinforce alliance commitments. Its Mediterranean location gives it strategic importance for NATO operations. Albania’s NATO membership since 2009 underscores its collective defence commitment.

The Straits Times

The venture will be based at the Pashaliman naval base in southern Albania. KAYO will hold a 49 % equity stake, while Fincantieri will own 51 %. The project plans to employ approximately 400 workers during construction and subsequent operations. The site will use existing Pashaliman facilities, a naval base. The venture will focus on small and medium-sized vessels, per officials.

The Straits Times

For Fincantieri, the partnership provides a foothold in a new European production hub and potential access to export markets beyond Albania’s own needs. For Albania, the joint venture supports naval modernisation, enhances domestic ship-building capability, and aligns with broader NATO-related security objectives. The collaboration gives Fincantieri access to wider markets while supporting Albania’s NATO integration. The partnership will create a new European base for Fincantieri, expanding its production footprint.

ReutersThe Straits Times

Albanian officials described the agreement as a step toward establishing a European base for building small and medium-sized vessels. The government highlighted the venture’s role in strengthening Albania’s defence infrastructure and contributing to regional security through increased NATO integration. The statement noted the venture could serve export markets beyond Albania.

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,” — Albanian government statement

The Straits Times

• “Based on the cooperation, Albania will become a new European base for Fincantieri to build small and medium-sized vessels, Defence Minister Ermal Nufi said.” — Defence Minister Ermal Nufi

The Straits Times

Both parties have not disclosed financial terms of the joint venture, and no commencement date for construction has been announced. The extent of technology transfer and the specific classes of vessels to be produced remain unspecified. The timeline for construction start remains unclear.

Reuters

The joint venture is expected to commence site preparation at Pashaliman in the coming months, pending finalisation of investment details. Ongoing monitoring will focus on employment outcomes, production capacity, and the venture’s contribution to Albania’s NATO commitments. Monitoring will track the venture’s impact on shipbuilding capacity.

The Straits Times