Albania signs agreement with Italy to produce naval vessels in Pashaliman

Albania signs agreement with Italy to produce naval vessels in Pashaliman

Albania has taken an important step toward developing its defence industrial sector. In the presence of Prime Minister Edi Rama and Defence Minister Ermal Nufi, a cooperation agreement was signed between the Albanian company KAYO and the Italian shipbuilding group Fincantieri.

Under the agreement, Albania will begin producing naval vessels at the Pashaliman Naval Base, initially for the needs of the Armed Forces and subsequently for export to international markets, positioning the country as a new manufacturing hub in the region.

Following the signing of the strategic agreement by KAYO Administrator Ardi Veliu and Fincantieri CEO Pierroberto Folgiero, Prime Minister Rama described the moment as a key milestone for the future of the country's security and economy.

"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." - the Prime Minister stated.

He also underlined that the project will have a direct impact on employment and professional training for young people, who will be involved in training programmes in cooperation with Italian experts. He noted that the Armed Forces will benefit from the first two vessels to be built in Pashaliman, with production continuing thereafter for export.

According to him, this will bring the total number of Albania's fleet units to seven, which, based on NATO benchmarks, represents an optimal level in terms of the country's responsibilities and role in the Mediterranean.

Defence Minister Nufi highlighted the strategic importance of the partnership, noting that Albania will become a European base for Fincantieri for "small to medium" vessels.

"Fincantieri expands its production capacity in Albania, while KAYO positions itself as a reliable industrial partner within an international framework." - he stated. He added that over 90% of the client base is international, largely consisting of existing Fincantieri customers.

For his part, Fincantieri CEO Pierroberto Folgiero emphasised that the agreement represents a transition from a cooperation framework to a concrete industrial project, with ambitions to develop competitive products for the international market and to contribute to the industrial development of the region.

The project foresees the establishment of a new shipyard in Pashaliman, expected to employ approximately 400 people, with an investment plan of €1.2 billion. The shipyard will become a key asset for the Naval Force in Vlorë, focusing on the construction and maintenance of vessels up to 80 metres in length and with a capacity of up to 800 tonnes.