Albania will produce combat drones

Albania has paved the way for the production of combat drones and military vessels, through a decision by the Government led by Edi Rama.

Minister of Defense, Ermal Nufi, said after the Albanian Government meeting that "the state-owned company, Kayo, has been authorized to enter into agreements for the production and marketing of combat drones and military and civilian vessels in Albania."

The decision of the Albanian Government is related to the approval of the terms of negotiation of the state-owned company, Kayo, owned by the Ministry of Defense, with private companies for the creation of a joint venture for the production, assembly, repair and marketing of unmanned aerial vehicles, as well as the construction and repair of military and civilian motorized floating vehicles.

Minister Nufi said that the two international companies will be Italian.

"This is a historic step, as it is the first time in many years that the conditions for the production of such vehicles have been created in the country. The decision was also discussed at the joint meeting of the Albanian and Italian governments," he stressed.

History of Kayo company

The state-owned Kayo company, owned by the Albanian Ministry of Defense, was established in September 2024 and the Government provided 150 million lek for its establishment.

This company, as it was said at the time, would lead the process of modernization of the military industry and the revival of the production capacities of the weapons factories in Mjekës, Elbasan, Gramsh and Poliçan, which ceased to function after the '90s.

This company started its activity a year later in the premises of the former Autotractor Factory, on the outskirts of Tirana and in addition to the production of military uniforms, it is also engaged in the dismantling of armored vehicles such as: specialized military vehicles, armored personnel carriers, artillery carriers, fire engines or ambulances. All these processes - as stated by the Albanian Government - will be carried out in cooperation with leading international companies.

In November 2025, Kayo signed a cooperation agreement with the Italian companies Leonardo and Fincantieri. During the signing of the agreements, it was emphasized that their focus was on the use of advanced technologies from ammunition to command and control systems, the development of maintenance capacities for existing ships of the Albanian Navy and the production of new naval vehicles for the domestic and international market.

Will Albania allow the US to use the Kuçova military base?

Meanwhile, asked by journalists whether Albania would allow the use of the Kuçova military base by the United States for operations against Iran, Nufi said:

"It remains to be assessed when such a request will come. We have strategic relations with the US, which go beyond our commitment to NATO. The Kuçova base is a NATO base and I believe that all decision-making is related to Albania's commitment to the alliance."

Albania has supported the United States and Israel's operation against Iran, which began on February 28.

Tirana has severed diplomatic relations with Tehran since 2022. Albania has accused Iran of carrying out a series of devastating cyberattacks against it since 2022, which targeted state digital infrastructure and public services, and led to the severance of relations.

Since the start of the conflict, Albania has also faced several cyberattacks, carried out by hackers linked to Iran. Relations between Tirana and Tehran are also tense because Albania provided safe haven to members of the Iranian opposition group, the MEK (also known as the People's Mojahedin Organization of Iran), over a decade ago.