Albanian defence industry seeks partner for ammunition production with investment of over 60 million euro
Albania is preparing the establishment of a joint venture for the production of munitions with the help of a private investor. This BalkanEngineer.com has learned from official information of the country's Council of Ministers, published on the website of the Ministry of Defence.
The government approved the terms of negotiations through which the state-owned company KAYO sh.a. will enter into a partnership with a private entity. The aim is to establish a joint stock company for the production and marketing of small and medium calibre ammunition, registered and operating under Albanian commercial law.
According to the government resolution, KAYO will retain a minimum 20% stake in the new structure and will provide at least 20 000 m2 of real estate. This real estate will be used for the needs of the joint venture but cannot be transferred or sold.
The private partner will be expected to fulfil several important commitments:
- Minimum investment of 60 million euro over 3 years;
- Employment of at least 80 workers;
- Installation of modern production lines to meet the operational needs of the armed forces and other security institutions;
- Establishment of a distribution network, especially export-oriented.
With this strategic partnership, Albania is taking a major step towards modernising its defence industry and establishing public-private models in sectors of high technological and defence importance. The project is part of a broader national vision to rebuild and develop defence production capacity, including other initiatives in the field of military equipment and technology.
Photo source: ©Engineer BG via Canva.com