Pirelli Pneus SA, a subsidiary of Italy#;s Pirelli SpA, is likely to receive financial assistance from the European Investment Bank to help the company flourish in the South American market, writes Monica Dobie.

The bank has drawn up plans to lend the company 44 million euros to modernise and extend an existing plant in Feira de Santana, in Bahia Brazil, to produce radial tyres for light vehicles. The project is expected to cost approximately 153 million euros in total.

Opened in 1976, the 401,763 square metre plant has 230 employees and manufactures tyres for cars, trucks and commercial vehicles. Its current production capacity is 1,200 tyres a day.