Germany is denying clearance to Rheinmetall for few defense trades with Turkey amid a row over campaign appearances by Turkish officials in pursuading support for a referendum that could boost President Tayyip Erdogan's powers.
"The German government is currently denying clearance for some export contracts", Rheinmetall Chief Executive Armin Papperger told reporters on Thursday after the release of its full-year results.
He said Rheinmetall remained in talks with Turkey over a contract to supply a defense system for its Leopard battle tanks, after the country lost 10 such vehicles in its war against the Islamic State.
Rheinmetall and peer Krauss Maffei jointly build the Leopard tanks. "Europeans would not be able to walk safely on the streets if they kept up their current attitude towards Turkey," Erdogan said on Wednesday.