Italy has moved to block a Chinese state-owned company from taking control of tyre making giant Pirelli. The decision is part of measures announced by Italy's government to protect businesses considered strategically important, and as such Pirelli's independence.
Facing losing market shares in the Mercosur region, Italy’s Pirelli is to build a new radial truck tyre factory in Argentina involving an investment of 500 million dollars. Construction will begin in 2012, with first-phase capacity on stream in 2014.