German Economy Minister Sigmar Gabriel addresses an Aug. 19 press conference in Berlin. (Stephanie Pilick / AFP)
FRANKFURT — German Economy Minister Sigmar Gabriel has given the go-ahead for defense technology company Rheinmetall to build an armored vehicle factory in Algeria, the weekly Der Spiegel reported on Sunday.
The €28 million ($37 million) contract covers an assembly line for Fuchs armored personnel carriers and their parts, the magazine said, quoting the economy ministry.
The plant is to be built about 400 kilometers (250 miles) 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.
Gabriel recently blocked a contract for Rheinmetall to provide a fully-equipped training camp to Russia because of the crisis in Ukraine.