Fincantieri and KAYO Form Joint Venture to Boost Albania Navy Capabilities
Strategic Partnership to Modernize Albania's Naval Infrastructure
Joint Venture Agreement Details
TIRANA, April 29 (Reuters) - Italian shipbuilder Fincantieri and Albania's KAYO have set up a joint venture to build and maintain vessels in Albania, which is seeking to modernise its military infrastructure and deepen its NATO ties.
The two sides signed a deal in the presence of the Albanian prime minister and defence minister, as well as the CEOs of Fincantieri and KAYO, according to a government and company statement.
Significance for Albania and Fincantieri
Albania has been a member of NATO since 2009 and its Mediterranean location gives it strategic importance beyond its size. For Fincantieri, it offers access to wider markets.
"This partnership paves the way to produce naval vessels in Albania, not only for the country’s needs but also for export to international markets," a government statement said.
Plans for Naval Base and Employment
Based on the cooperation, Albania will become a new European base for Fincantieri to build small and medium-sized vessels, Defence Minister Ermal Nufi said.
The project envisages the creation of a construction site at the naval base of Pashaliman in southern Albania, where about 400 people are expected to be employed.
Ownership Structure and Financial Details
KAYO, which specialises in the development of strategic industrial infrastructure and is controlled by the Albanian Defence Ministry, will hold a 49% stake in the new venture and Fincantieri will hold 51%, Fincantieri said in a statement on its website.
It did not provide any financial details or say when work would begin.
Reporting Credits
(Reporting by Florion Goga, writing by Daria Sito-Sucic; Editing by Barbara Lewis)
