German defence group Rheinmetall is set to sign a 2.7 billion euro deal in the coming weeks for the production of 980 Fuchs 2 military vehicles for Algeria, according to German news reports.

German newspaper Handelsblatt today reported that the deal is part of various German contracts with the North African country that include two Meko A200 frigates from Thyssen-Krupp (ordered in 2012) and SUVs and trucks from Daimler valued at a total of 10 billion euros.

A factory to build the Fuchs vehicles will be built in Ain Smara in northeast Algeria, according to Handelsblatt. Algeria has agreed not to sell the vehicles to other countries. […]