KAYO (Albania)

KAYO SH.A
Company typeState-owned enterprise
IndustryDefence industry, Security
Founded24 September 2024
FounderGovernment of Albania (Ministry of Defence)
HeadquartersTirana, Albania
Area served
Albania and international markets
Key people
Ardi Veliu (Administrator / CEO)
ServicesDesign, production, repair, demilitarization, disposal, and trade of weapons, ammunition, military technologies, equipment, uniforms, communication systems
OwnerGovernment of Albania
Websitehttps://kayo.al

KAYO is a state-owned Albanian defense and security company established in 2024. Headquartered in Tirana, the company was created to revitalize Albania's military industry by inheriting and modernizing the production capacities of the Mjekës Explosives Plant, Gramsh Mechanical Plant, and Poliçan Mechanical Plant.[1]

History

Albania has inherited a military industry from the communist era which today no longer meets modern production.[2][3] In May 2024, the Albanian Parliament presented a draft law on the creation of a state-owned company for arms production, aiming to reactivate the arms industry in Albania. Earlier in April 2024, the Ministry of Defence preceded the reawakening of the military industry in Albania.[4] During his speech in parliament, the government's strategy to attract foreign investors to reinvigorate the country's three idle production sites in Polican, Elbasan and Gramsh was revealed. [5]

The three production sites were built in 1962 to supply the state's armed forces with ammunition, cannons, aviation bombs and mortar shells. With the restructuring of the Albanian military forces following the collapse of the communist regime in 1990, demand for the plants' production fell drastically, leading to the end of production.[6]

The idea of reopening arms production facilities was first articulated during a summit in Tirana focused on Ukraine. President Volodymyr Zelensky highlighted the need for armament production for Kyiv.[7]

In August 2024, the government allocated 150 million lek (approximately €1.5 million) as initial capital for KAYO, as part of a broader 440 million lek package for the restructuring of the defense sector.[8]

On 9 April 2025, KAYO signed a memorandum of understanding with Italian shipbuilder Fincantieri to jointly explore naval infrastructure development, ship construction, and training initiatives. The agreement was signed in Durrës in the presence of the Albanian and Italian defense ministers.[9]

Subsidiaries and Joint Ventures

Timak Defence

  • Ownership: 80% by Timak, 20% by KAYO
    • Production and adaptation of specialized vehicles, including armored military and protection vehicles, anti-drone equipment, urban security vehicles, fire rescue vehicles, and ambulances.[10]

MKD (Myslym Keta Defence)

  • Ownership: 80% by MSSC (MILITARY SYSTEM SUPPLY COMPANY), 20% by KAYO
    • Production and trade of small and medium-caliber ammunition[11]

GUNA TACTICAL

  • Ownership: 51% by KAYO, 49% by MSSC (MILITARY SYSTEM SUPPLY COMPANY)
    • Manufacture of military gear and accessories[12]

Strategic Partnership with Fincantieri

  • Development of Albania's naval defense infrastructure, including ship construction and maintenance[13]

Engagement with International Defense Investors

In March 2025, Albania's Minister of Defence, Pirro Vëngu, stated in parliament that 21 foreign companies had submitted expressions of interest in investing in Albania's defense industry, which KAYO was established to develop. The proposals included projects related to the production of ammunition, artillery systems and military drones. According to the minister, negotiations were ongoing with five companies.[14]

References

  1. ^ KAYO SH.A – About Us
  2. ^ Faktoje (2 May 2024). "Weapon production line for Ukraine? Albania with eyes towards the West". en.Faktoje.al. Retrieved 14 April 2025.
  3. ^ Nacional, Radio (4 April 2025). "Building Defense Capacities in Albania in the Context of Global Political Uncertainties: A Strategic and Geopolitical Analysis". RADIO NACIONAL. Retrieved 14 April 2025.
  4. ^ "What is known so far about the state company for the production of weapons 'Made in Albania'". Telegrafi. 7 June 2024. Retrieved 5 January 2025.
  5. ^ "Albania to set up state weapons company as it seeks to revive arms industry". www.intellinews.com. 25 July 2024. Retrieved 14 March 2025.
  6. ^ Hodo, Genta (17 April 2024). "Albania plans to reopen weapon production plants | Albania Politics News | SeeNews". seenews.com. Retrieved 14 March 2025.
  7. ^ "Albania to resume arms production and sales after decades long break". Albanian Times. 27 July 2024. Retrieved 5 January 2025.
  8. ^ "Albania eyes the military industry, the Government allocates millions for KAYO". Telegrafi. 2 September 2024. Retrieved 16 April 2025.
  9. ^ Bosworth, Alan (10 April 2025). "Fincantieri/Kayo signs MoU to support the development of Albanian naval sector". Baird Maritime / Work Boat World. Retrieved 16 April 2025.
  10. ^ [1]
  11. ^ [2]
  12. ^ [3]
  13. ^ Fincantieri signs memorandum of understanding with KAYO
  14. ^ SCAN TV – Military Industry in Albania
  • This article reflects developments as of May 2025.*
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