Iraqi insurgents kidnapped two German engineers from outside their workplace in the Iraqi industrial town of Baiji on Tuesday morning. The German engineers appear to be from the eastern city of Leipzig and were working for an Iraqi detergent firm in the town, which is located 180 kilometers (110 miles) north of Baghdad. A third German apparently escaped the hostage-taking after kidnappers mistook him for an Arab.

Conflicting reports emerged about the circumstances of the kidnappings. Reuters reported that there were six gunmen involved, all wearing Iraqi army uniforms. But other reports claimed the kidnappers were wearing traditional Iraqi clothing.

"We have indications that two Germans may have been kidnapped. I am being constantly updated on the situation," German Foreign Minister Frank-Walter told reporters in Berlin. Steinmeier said the German government had formed a crisis management team to deal with the abduction -- as it has done with a recent string of kidnappings . German news broadcaster N-TV named the two men as Thomas Wischke und Rebiti Drata, but the government did not confirm their identities.

According to Germany's Foreign Ministry, around 100 German citizens are currently on the ground in Iraq aiding in efforts to rebuild the war-torn country.

The incident comes only a month after Susanne Osthoff , a German woman living and working in Iraq, was freed from captivity. There has been much debate in Germany about whether Berlin paid a ransom for her release. Indeed, numerous media reports this week that Osthoff was in possession of $4,000 of that alleged ransom money at the time she was turned over to German authorities. However, federal police reported no wrong-doing in the event.

Germany is well-known as one whose government is willing to pay hefty ransoms in order to save its citizens. In 2003, at least €5 million changed hands in order for Berlin to secure the release of 14 adventure tourists kidnapped while vacationing in the Sahara Desert. And on Tuesday, journalists asked Steinmeier whether a possible ransom paid for Osthoff might have encouraged the kidnapping of the two German engineers. "Not the payment of ransom, but rather the reporting about it," he said.

Osthoff's abduction sparked a nationwide debate in Germany over just how much responsibility the government in Berlin should have for its citizens if they choose to travel to known dangerous locations. The area around Baiji is notorious for both attacks by both terrorist insurgents and criminal gangs.