The Council of Ministers approved this Wednesday a decision that paves the way for the state-owned company "KAYO" sh.a. to negotiate with private companies for the creation of a joint stock company, which will focus its activity on the production and marketing of military uniforms and other accessories for the Armed Forces and security structures in the country.
According to the decision, “KAYO” jsc. will hold at least 40% of the shares in the new company and will contribute an area of at least 20,000 m² in real estate, which will be put into use by the joint venture without the right of alienation.
The private party, on the other hand, must commit to a minimum investment of 15 million euros within a 3-year period, as well as ensure the employment of at least 400 employees and the provision of modern production lines.
It is also envisaged that "KAYO" will have the right to appoint the administrator with the agreement of at least 30% of the members of the management or supervisory board and the right of veto in key decision-making, in accordance with Law No. 88/2024.
The physical security of personnel and infrastructure will be guaranteed by the Armed Forces, according to the law on the command authorities of the Armed Forces.
Ultimately, the new company will be authorized to supply the Armed Forces with uniforms and related equipment, paving the way for closer cooperation between the public and private sectors in the defense industry.
DECISION:
DECISION
ON
THE APPROVAL OF THE TERMS OF NEGOTIATION OF THE STATE COMPANY “KAYO”, JSC, WITH PRIVATE COMPANIES FOR THE PRODUCTION AND TRADE OF MILITARY UNIFORMS AND ACCESSORIES
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
DECIDES:
1. This decision has as its object the approval of the terms of negotiation of the state company “KAYO”, JSC, with private companies, with the aim of establishing a joint stock company, for the production and trade of military uniforms and accessories, 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 40% 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 (twenty thousand) m², which will be given to the joint venture for use in one of the forms provided for by the Civil Code of the Republic of Albania, without the right to alienate.
4. The state-owned company “KAYO”, sh.a., during the negotiation process, in any case, ensures from the entity with which it negotiates, at least:
a) an investment value of no less than 15 million euros in the period of 3 (three) years;
b) the employment of no less than 400 (four hundred) employees in the period of 3 (three) years;
c) providing technological lines for the production of uniforms and other accessories, 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 military uniforms and accessories for the Armed Forces, as well as uniforms and accessories 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, to be established 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 composition of the management board or 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 shall contain the provisions on the right of veto enjoyed by the company “KAYO”, sh.a., pursuant to point 9, article 10, of law no. 88/2024, “On the establishment of a state company for the production and trade of weapons, ammunition, equipment and military technologies”.
9. The physical security of personnel and infrastructure shall be ensured by the Armed Forces, in accordance with the by-laws issued by the competent authorities, pursuant 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 military uniforms and relevant accessories through the company to be established, in accordance with this decision.
11. The state-owned company “KAYO”, sh.a., is charged with the implementation of this decision.
This decision shall enter into force immediately and shall be published in the “Official Gazette”.
PRIME MINISTER
EDI RAMA
In absence and by order
DEPUTY PRIME MINISTER
BELINDA BALLUKU (A2 Televizion)
A2 CNN Livestream
MUND TE LEXONI GJITHASHTU
