Albania is expanding its domestic defence industry through six joint ventures with international companies, targeting local production of military equipment, ammunition and protective gear.
The state-owned defence company KAYO is coordinating the partnerships under a public-private investment model, Defence Minister Ermal Nufi announced in September. The initiative is intended to strengthen domestic manufacturing, reduce reliance on imports and develop capabilities for Albania’s armed forces and potential export markets.
The first 40 domestically manufactured military vehicles have already entered service with the Albanian Armed Forces. Production of small-calibre ammunition is also planned, while locally manufactured personal protective equipment is expected to supply the military and other security institutions.
Naval industry development is another part of the strategy. Through Fincantieri Albania, established in partnership with Italian shipbuilder Fincantieri, Albania aims to build domestic capacity for naval vessel construction and maintenance.
The government views the programme as a long-term investment in national security, industrial expertise and employment, while seeking to strengthen Albania’s contribution to NATO’s collective defence capabilities.
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