Havana, Jan 8 (IANS): A German commercial office will be established in Havana, the Cuban capital.

The memorandum of understanding about the projected commercial office was signed by visiting German Vice Chancellor, Sigmar Gabriel, who is also German minister for Economic Affairs and Energy, and Rodrigo Malmierca, Cuba's minister for Foreign Trade and Investment, during a meeting held in Havana on Thursday, Xinhua reported.

Further details about the projected commercial office, such as the exact time regarding the establishment and opening of the new office, were not disclosed.

The office is meant to seek to boost investment from German companies to Cuba. The bilateral trade currently stands $245 million a year.

During the meeting, Gabriel said German companies were keen to invest in Cuba in the long-term, especially as the island country modernises its economy.

Malmierca expressed his belief in the great potential for growing economic ties between Cuba and Germany.

Representatives from 60 German companies accompanied Gabriel, including heavyweights such as Volkswagen, Siemens AG and Bosch, and other small and medium enterprises.