Italian tyre manufacturer Pirelli has announced it will build a new production facility in Argentina.
The firm has announced that it will initially invest around $300 million (£190 million) in the plant, which is to be located just outside Buenos Aires, and is expected to be operational by 2014.
Construction of the new truck tyre plant will start in early 2012, with Pirelli confirming that another $200 million could be spent to further expand the facility in the future.
The plant will initially be able to produce approximately 700,000 tyres per year, with production capacity projected to be doubled should Pirelli go ahead with the second phase of development.
Marco Tronchetti Provera, the company's chairman and chief executive, claimed that the new plant will help diversify its operations in South America.
He told the Financial Times: "It is a way to follow growth and invest in a balanced way, not in one single country as it used to be, and to be less exposed to volatility."
Last year, Pirelli confirmed it would invest $100 million to increase capacity at its existing plant in Argentina.
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Posted by Danielle Barge