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Government approves negotiation terms for ammunition production and trade

2025-07-10 19:33:00, Politikë CNA

The Albanian government has today approved the terms of negotiation between the state-owned company 'Kayo' sh.a. and private companies for the production and marketing of small and medium caliber ammunition.

DECISION ON THE TERMS OF NEGOTIATION OF THE STATE COMPANY “KAYO”, JSC, WITH PRIVATE COMPANIES FOR THE PRODUCTION AND TRADE OF SMALL AND MEDIUM-CALIBER AMMUNITION

In support of Article 100 of the Constitution and point 3, Article 10, of Law No. 88/2024, “On the establishment of a state company for the production and trade of weapons, ammunition, military equipment and technologies”, upon the proposal of the Minister of Defense, the Council of Ministers

DECIDED:

1. This decision aims to approve the terms of negotiation of the company "KAYO", sh.a., with a private company, with the aim of establishing a joint stock company, for the production and trade of small and medium caliber ammunition, registered in the Republic of Albania, in accordance with the legislation in force for commercial companies and under the conditions set out in this decision.

2. The company "KAYO", sh.a., will negotiate and accept a participation of no less than 20% of the shares in the joint venture, which it will create with a private company.

3. The company "KAYO", sh.a., will contribute to the new commercial entity, with real estate, in the amount of no less than 20,000 m2, which will be given to the joint company for use, in one of the forms provided for by the Civil Code of the Republic of Albania, without the right of alienation.

4. The company "KAYO", sh.a., during the negotiation process, in any case, ensures from the entity with which it negotiates, at a minimum:

a) an investment value of no less than 60 million euros over a period of 3 (three) years;

b) employment of no less than 80 (eighty) employees within a period of 3 (three) years;

c) providing technological lines for the production of small and medium caliber ammunition, according to the operational needs of the Armed Forces of the Republic of Albania and other security structures;

ç) ensuring the distribution network of products, in case of export.

5. The company "KAYO", sh.a., ensures from the other party, during the negotiations, that, in addition to other provisions, the scope of activity of the commercial company to be established will include the production and trade of ammunition for the Armed Forces, as well as ammunition for use by other security structures.

6. The company “KAYO”, sh.a., ensures from the other party, during the negotiations, that the administrator(s) of the company, which will be created by the two aforementioned companies, is/are selected with the agreement of the company “KAYO”, sh.a.

7. The company “KAYO”, sh.a., ensures from the other party, during the negotiations, that at least 30% of the management board or the supervisory board of the company, which will be created, if the form of the company provides for these management/supervisory bodies, will be appointed by the company “KAYO” sh.a.

8. The statute of the company to be established contains the provisions on the veto right enjoyed by the company “KAYO”, sh.a., based on point 9, article 10, of law no. 88/2024, “On the establishment of a state company for the production and trade of weapons, ammunition, military equipment and technologies”.

9. The physical security of personnel and infrastructure will be ensured by the Armed Forces, according to the by-laws issued by the competent authorities, according to Law No. 64/2014, “On the powers and authorities of the direction and command of the Armed Forces of the Republic of Albania”, as amended.

10. The company "KAYO", sh.a., and the private company with which it will cooperate are authorized to supply the Armed Forces of the Republic of Albania with ammunition through the company to be established, in accordance with this decision.

11. The state-owned company "KAYO", jsc, is charged with the implementation of this decision.

This decision enters into force immediately and is published in the "Official Gazette". /CNA