The Albanian government has empowered its state defense company KAYO to produce and market arms, ammunition, and military equipment, a move aimed at revitalizing national defense manufacturing. The Council of Ministers’ decision allows KAYO to undertake production directly or through its subsidiaries to meet domestic defense needs and supply other state entities. All Albanian security institutions are now required to submit requests to KAYO before turning to public tenders, giving the firm the first opportunity to fulfill orders. If the company cannot meet a request within 30 days, agencies may proceed with open procurement. When production is feasible, direct contract negotiations are authorized between KAYO and requesting institutions. This decision comes amid Albania’s broader strategy to rebuild its defense industrial capacity after decades of decline. The government has initiated modernization of the Polican munitions plant to restart ammunition manufacturing and attract international investors to upgrade production facilities. In parallel, Albania signed a cooperation agreement with NATO’s Support and Procurement Agency to improve storage and logistics sites for defense materials to meet alliance standards. Plans also include revamping the Gramsh weapons factory to reintroduce rifle maintenance and assembly capabilities. Collectively, these actions signal Albania’s intent to restore strategic autonomy, create domestic defense jobs, and strengthen integration with NATO defense supply chains.
