Albania has approved a partnership with the Italian Fincantieri and Leonardo to manufacture ships and drones for the defense sector

2026-05-082 min.

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Albania has officially launched a plan to revitalize its defense industry through a strategic partnership with leading Italian corporations. Defense Minister Piro Vengu and his successor Ermal Nufi announced that the Albanian government has authorized the state-owned arms manufacturer KAYO to sign contracts with Italian giants Fincantieri and Leonardo, BalkanEngineer.com learned from a report by the Albanian Telegraph Agency (ATA).

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The decision was announced following an intergovernmental meeting between Tirana and Rome and envisages large-scale cooperation in two key sectors. The joint venture with Fincantieri will focus on the production of military vessels, including patrol ships, with the strategic naval port in Pasha Liman, Albania, serving as the main production base. The goal of the project is to meet the needs of the Albanian armed forces while simultaneously producing vessels for export to international markets.

In addition to maritime defense, the partnership with Leonardo is also focused on developing modern defense technologies, manufacturing drones, and creating cyber defense systems that comply with NATO standards. This marks the first time in decades that Albania has established the conditions for manufacturing such sophisticated defense equipment on its own territory. According to the government, the initiative will transform the country into one of the leading hubs for the defense industry and create new highly skilled jobs in the technology and shipbuilding sectors.

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