UPDATE 1-Pirelli to invest $100 million in Argentine plant

* Pirelli sees Argentina revenue up on overhauled plant

* Company to move part of its production to Argentina
(Adds quotes and details, changes dateline)

BUENOS AIRES Oct 20 (BestGrowthStock) – Italian tire maker Pirelli
& C SpA (PECI.MI: ) will invest $100 million in Argentina to
revamp its plant in South America’s No. 2 economy, the
Argentine president said on Wednesday.

The company will use the money to expand its plant on the
outskirts of Buenos Aires by 2013 and buy new technology, which
would allow Pirelli to hire more staff and increase output.

“(Pirelli) decided to raise the stakes and take the
investment up to $100 million from the $80 million that I had
written down,” President Cristina Fernandez said in a speech at
the plant.

The Italian company said in a statement confirming the
investment that it aims to increase its Argentine revenues to
$500 million in 2013 compared with $365 million this year.

Pirelli Chairman Marco Tronchetti told reporters in Buenos
Aires the investment means the company will move part of its
production to Argentina, from Brazil and Europe.

He also said that once the expansion is over, about 50
percent of the plant’s production will be exported to Brazil,
Europe and the United States.

Car makers in Argentina expect record output this year on
strong demand for new cars from regional powerhouse Brazil.

The Argentine unit of Italian automaker Fiat SpA (FIA.MI: )
said last month it sees output tripling in two years should
demand for new vehicles from Brazil continue to rise.
[ID:nN29116093]
(Reporting by Jorge Otaola in Buenos Aires and Milan newsroom;
Writing by Eduardo Garcia, Editing by Gerald E. McCormick)

UPDATE 1-Pirelli to invest $100 million in Argentine plant