Albania signs agreement with Italy on construction of warships

The deal was signed between the Albanian state-owned Kayo company, which operates in the defence and security industry, and the Italian company Fincantier, which is one of the largest builders of commercial and military ships in Europe.

The two companies will create a new society to produce warships in Albania, at the site of Pashaliman, south of the country.

An estimated 400 people will be employed under the agreement on this new site. The shipyard will be transformed into a key asset for the Sea Force in Vlora, with the focus on building and maintaining units up to 80m long and 800 tonnes of capacity.

According to the Albanian Ministry of Defence, the Kayo company will make the site available and invest in modernisation of infrastructure, while Fincantier will bring expertise and training, material supply and technological support for a modern production process. The Albanian ministry stressed that this is an ambitious plan of 1.2 billion euros.

Pashaliman is the most important base of the Albanian Marine Force, and is located in Vlora Bay in southern Albania. It works as a naval military base and shipyard and shipbuilding. At the time of the Cold War, it was one of the most important bases in the Mediterranean for the Soviet Union. After the 1990s was used by the Albanian Marine Forces and reshuffled with international aid.

Attending the signing ceremony were Albanian Prime Minister Edi Rama, Defence Minister Ermal Nufi, Italy's ambassador to Tirana, Marco Alberti, and representatives of companies operating in the military industry in the two countries.

Prime Minister Rama described the agreement as an important moment for the future of Albania's security and economy, the NATO member state.

“We [Albania] will be the first to take advantage of the products of society concretely from the first two ships to be built for our Armed Forces and that will lead to the seven total number of our fleet... and then the production will certainly continue to export these vessels, where it is certainly clear that the new technology and innovation that will accompany this journey will be implemented<x1, he said.

Rama added that recent developments make investing in the military industry necessary.

“I hope the world will improve and the wars will end, but in the meantime, Albania is too small to decide the future of the world and the fate of the geopolitical chess game, but we have to adapt. We have to adapt to our little one, of course, to have a dignified defence and to have everything needed to be up to a small country, but proud of the transatlantic alliance, where we participate”, the Albanian prime minister said.

Defence Minister Ermal Nufi stressed that this co-operation makes Albania a new European base of “Pinciantier-of” for small and medium-sized ships.

The business module is that over 90% of customers are international, Fincantier's existing clients”, he said.

On 10 April, the Albanian government made the decision to authorise state society, Kayo, to link agreements for the production and marketing of combat fears and military and civilian vessels in Albania.

Meanwhile, a few days ago the US Embassy in Tirana in a media report on the visit of US Ambassador to NATO Matthew Whitaker, in Albania, stressed that Albania's “ability to become a logistical NATO node in the region” was discussed. /Periscope