Germany’s Economy Minister Sigmar Gabriel has given the go-ahead for defence technology company Rheinmetall to build an amoured vehicle factory in Algeria, the weekly Der Spiegel reported on Sunday.
The €28-million contract covers an assembly line for Fuchs armoured personnel carriers and their parts, the magazine said, quoting the economy ministry.
The plant is to be built around 400 kilometres east of Algier, the report stated.
The contract dates back to a visit to Algeria by Chancellor Angela Merkel in 2008 and had already been largely approved by her previous administration, it added.
Details of the factory for armoured vehicles were first reported in June. Algeria was Germany’s biggest arms market in 2013 with exports worth more than €825 million.
Germany’s biggest weapons’ markets in 2013
|Country||Value of arms exported (€)||Main equipment bought|
|1) Algeria||825 726 128||Tank parts, SUVS, trucks|
|2) Qatar||673 377 690||Tank parts, trucks, flight simulator|
|3) United States||610 685 905||Guns, submarine equipment, tank parts|
|4) Saudi Arabia||361 024 681||Parts for fighter jets and helicopters, reconnaissance systems|
|5) Indonesia||295 707 513||Tanks, submarine parts|
Gabriel recently blocked a contract for Rheinmetall to provide a fully-equipped training camp to Russia because of the crisis in Ukraine.