Military industry, another step towards recovery - State-owned company "KAYO" sh.a takes ownership of the copper processing plant
The arms manufacturing industry in Albania has recently taken another step towards its revival. The former copper processing plant in Rubik has been taken over by the state-owned company, “KAYO” sh.a, which is responsible for the production, demilitarization and trade of weapons, ammunition, military equipment and technologies. The government decision has been published in the Official Gazette and has entered into force.
This decision clearly states that the state-owned company “KAYO” jsc is prohibited from changing the destination of use beyond the scope of its activity, or from alienating its properties. In this way, this company will benefit from one of the raw materials used in the weapons production industry.
The copper processing plant in Rubik started operating in 1965, producing pure and refined copper, electrolytic copper, and copper alloys. In the early 1990s, this plant stopped production and deteriorated year after year. Later, an attempt was made to restart it with the creation of the state-owned joint-stock company "Albbakër", but this attempt also failed after a few years. Since 2004, "Albbakër" has been a "company in liquidation".
Albania has inherited from the past a military industry which today does not exercise its activity and as a result cannot respond to the demands of our armed forces and for years these demands and needs have been met on the international market.
Our country, like all other allied countries, has the obligation to increase operational capacities and the level of reserve in ammunition and weapons, to respond to the constantly changing security situation.
But, in addition to investments from the state budget for the revival of this industry, international companies are also showing interest. Speaking in Parliament the day before, the Minister of Defense, Pirro Vëngu, stated that there are currently 21 requests from foreign companies to invest in Albania.
"All regulatory foundations for the military industry have been laid by the state-owned company, which has already regrouped 5 assets. We have received 21 official expressions of interest from international companies for the production of ammunition, artillery, military drones and we are conducting negotiations with 5 of them. I believe that very soon we will be able to provide a clear overview of the state of the negotiations even after the Security Commission. We will continue to invest in human capital. We had the lowest salaries in the region and our goal is to reach above the NATO average. We will come up with legal and sub-legal acts for this very soon."
Albania is expected to spend 2% of its Gross Domestic Product (GDP) on the defense sector by 2025, in line with NATO requirements. The strategic goal of modernizing the defense industry in accordance with NATO standards is not only necessary to increase Albania's defense capabilities, but also to strengthen the country's strategic position in the region and on the international security scene, as well as to promote economic development.
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