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Weapons production by the state-owned company, Ermal Nufi responds to DP MPs: This is an international model, here's how much the Government has spent so far

2026-04-23 15:00:37Politikë SHKRUAR NGA REDAKSIA VOX

Weapons production by the state-owned company, Ermal Nufi responds to DP MPs:

During an interpellation in Parliament with Democratic MP Klevis Balliu, the Minister of Defense, Ermal Nufi, discussed in detail the role and functioning of the KAYO company, describing it as an important instrument in the service of national security.

In his speech, Nufi emphasized that KAYO is not conceived as a manufacturing company in the classical sense, but as a structure that collaborates with private partners and capital specialized in the military industry.

According to him, the goal is to produce equipment and ammunition in Albania for the needs of the Armed Forces, but also for export, following similar international models where the private sector plays a key role.

"From the beginning, KAYO was conceived not as a direct manufacturing company, retaining very few of the tasks to exercise itself as a company, its goal is as a company that co-produces with private capital and partners who know the industry and who must cooperate with the KAYO company, which is owned by the Ministry of Defense, and produce in the Republic military products necessary for the Armed Forces, but also for export to all those who are interested.

"This is an international model, the goal is to activate private capital," said the minister, while further responding to criticism, he underlined that the creation of KAYO is also related to the country's commitments to NATO and the need to increase production capacities at a time when the world is under threat of wars from all sides.

Regarding financing, the minister announced that so far, about 3 million euros have been invested from the state budget, part of which has been used for the basic functioning of the company, including staff and operating expenses.

"Since its establishment until today, the total capital invested by the state budget for the company is 3 million euros, of which 33% could have been spent on maintaining staff, salaries and basic operations of the company in the Republic. All other investments for the four established companies definitely come from private capital", Nufi emphasized.

Excerpt from Ermal Nufi's speech:

For me, it is a very good opportunity not only to present the work of the KAYO company and its work practices, the contribution and purpose why it was created, as well as the value it represents and all the commitments it has undertaken within the framework of national security. From the beginning, KAYO was conceived not as a directly manufacturing company, retaining very few of the tasks to exercise as a company itself.

Its goal is as a company that co-produces with private capital and partners who know the industry and who should cooperate with the KAYO company, which is owned by the Ministry of Defense, and produce in the Republic military products necessary for the Armed Forces, but also for export to all those who are interested. This is an international model, the goal is to activate private capital.

Other countries in the world also have private companies that produce; the largest companies are private, not state-owned, and are engaged by the governments of the countries. KAYO was founded in 2024 after the adoption of laws, whether for the law on society, the functioning of society and the regulation of the industry. This is a practice that serves transparency, contrary to what is said. There are countries in the EU that have a developed industry and these elements are united into one, where the producer and the institution are in one.

The KAYO company is separate and its licensor is separate. Albania is not a country that does not know the military industry, in the past we have been fundamentally engaged in the production of all equipment or ammunition in Albania. We had three plants that produced weapons and explosives, ammunition that have served national security for years for the Armed Forces, and even serve today.

In 2004, when this industry was closed, KAYO's goal was to revive it with the goal of connecting it to our NATO commitment. KAYO is a company that produces security. Today, the conflict in Ukraine or the Middle East shows how important capabilities are.

Contrary to what the deputy claimed or what was presented in the request for interpellation, as long as we talk about national security and production capacities in the Republic, I would very much like it to be a different reality.

Today, our neighbors do not have the 4 plants that we want to build, but 12. In our country, the establishment of a society that revives is viewed with suspicion and mixed feelings because this society operates with private partners. Of course, it operates with private partners, because they are the ones who invest capital.

Since its establishment to date, the total capital invested by the state budget in the company is 3 million euros, of which 33% may have been spent on maintaining staff, salaries and basic operations of the company in the Republic. All other investments for the four established companies necessarily come from private capital.


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