Albania and Italy launch joint naval defense venture at Port of Durrës

State-owned Albanian defense company KAYO and Italian shipbuilding giant Fincantieri have signed an agreement to create a joint venture focused on naval military production. The deal was formalized at the Port of Durrës in the presence of Prime Minister Edi Rama, Italian Defense Minister Guido Crosetto, and Albania’s Minister of Defense Pirro Vengu.

Why this is important: The agreement includes the revival of the Pashaliman Shipyard, a key military facility in southern Albania, and aims to produce both combat and civilian vessels for the Albanian Navy and for export. This marks a significant step toward strengthening Albania’s defense infrastructure and expanding its role in the Mediterranean naval industry.

Context: The joint venture will focus on reactivating Pashaliman, one of Albania’s two main naval bases along with Durrës. Located near Orikum at the southwest end of the Bay of Vlorë, Pashaliman has historical significance. In 1955, following the creation of the Warsaw Pact, the Soviet Union stationed 12 submarines at the base, making it the only Soviet military installation in the Mediterranean at the time. The Soviets invested heavily in the site, which remained a strategic point throughout the Cold War.

The new partnership between KAYO and Fincantieri is expected to breathe new life into the site, turning it into a center for naval production, modern shipbuilding, and technological collaboration between Albania and Italy.

What else: At the same ceremony, the Italian government formalized the transfer of the patrol vessel “Libra” to the Albanian Naval Force. The vessel, previously in service with the Italian Navy since March 1991, is a direct donation from Italy. The last time “Libra” docked in Albania it was transporting asylum seekers to the Port of Shëngjin.

Prime Minister Rama welcomed the vessel and the broader partnership:

“This ship is a visible and tangible symbol of everything we’re doing together. But what we’re building is much more than this vessel, much more than the material aspect. We are creating a real synergy between both sides of the Adriatic — combining new ideas and new energy to transform this long-standing friendship into something that benefits both of our nations.”

Also docked in Durrës today was the historic Italian training ship “Amerigo Vespucci”, which arrived as part of a visit to mark the occasion. Built in 1931, the vessel is one of the most iconic tall ships in the world and has completed global voyages as part of its naval training mission.