The Council of Ministers of Albania has officially approved the negotiation terms for the state-owned company “KAYO” sh.a. to enter into a partnership with a private entity for the production and marketing of small and medium-caliber ammunition.
This decision paves the way for the establishment of a joint-stock company between “KAYO” and a private partner, which will be registered and operate in accordance with Albania’s commercial legislation. The main objective of this partnership is to strengthen the country’s defense industry by developing a domestic manufacturing and distribution network for military-grade ammunition.
According to the government’s resolution, “KAYO” sh.a. will maintain no less than a 20% ownership stake in the newly formed joint company. As part of its contribution to the new entity, “KAYO” will provide at least 20,000 square meters of immovable property for use by the joint venture. This property will be made available under terms set out in the Albanian Civil Code, but cannot be transferred or sold.
During negotiations, “KAYO” is mandated to secure key commitments from the private partner. These include:
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A minimum investment of €60 million over a three-year period;
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The employment of at least 80 workers within three years;
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The provision of advanced technological production lines for small and medium-caliber ammunition, in line with the operational needs of the Albanian Armed Forces and other national security institutions;
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The development of a distribution network, particularly for potential exports.
This strategic partnership marks a significant step for Albania’s efforts to modernize its defense industry and foster public-private collaboration in high-security sectors.