Albania has signed a major defence cooperation agreement with Italy aimed at strengthening its military capabilities and developing a domestic shipbuilding industry, in a move that underscores closer strategic alignment between the two NATO allies.
The deal, signed between Albanian defence firm Kayo and Italian shipbuilding giant Fincantieri, will enable the construction of naval vessels in Albania for both national use and export to international markets.
The agreement was formalised at a ceremony attended by Prime Minister Edi Rama, Defence Minister Ermal Nufi and Fincantieri CEO Pierroberto Folgiero, along with senior industry representatives.
Shipyard planned in Pashaliman
Central to the agreement is the construction of a new shipyard in Pashaliman, a coastal military area in southern Albania. The facility is expected to employ around 400 people and produce small- and medium-sized naval vessels.
Officials say the project will boost Albania’s industrial capacity, create skilled jobs and introduce advanced manufacturing technologies into the country’s defence sector.
Defence Minister Nufi described the agreement as strategically significant, saying it positions Albania as a new European production base for Fincantieri while integrating local industry into international supply chains.
Joint venture and export plans
The partnership will lead to the creation of a joint company, “Fincantieri Albania,” combining Italian technical expertise with Albanian industrial capacity. Initial production will focus on vessels for the Albanian Armed Forces, with plans to expand into exports for allied countries.
Prime Minister Rama said the agreement reflects broader changes in Europe’s security environment and economic priorities.
“This is not only about strengthening our armed forces,” Rama said. “It is also about building an industrial future for our youth and positioning Albania as part of a new shipbuilding ecosystem.”
He added that the first vessels produced under the agreement will increase Albania’s naval fleet to seven ships, in line with NATO-related planning benchmarks.
Broader defence cooperation
The deal also complements wider defence cooperation with Italy, including partnerships with Leonardo on missile defence and maritime security systems.
Rama said Albania must adapt to shifting geopolitical realities.
“Albania is a small country, but we must ensure a dignified level of defence as part of the transatlantic alliance,” he said.
The project also includes a strong training component. Students from technical schools in Vlora are expected to receive specialised training both in Albania and in Italy, supported by Fincantieri professionals.
Officials say this will help develop local expertise in advanced manufacturing and defence technologies.
The agreement highlights growing defence and economic ties between Albania and Italy at a time of increased focus on regional security and defence readiness in Europe.
The project is expected to begin implementation in the coming months.
/Argumentum.al
