Simplify the following text for a Grade 7 native English-speaking person.
Original: Annaberg-Buchholz is a town in the Free State of Saxony , Germany , in the Erzgebirge , capital of the district Erzgebirgskreis .
Simplified: Annaberg-Buchholz is a town in the Free State of Saxony , Germany . It is located in the Erzgebirge and the capital of the rural district Erzgebirgskreis .