Market and product

Oct 25 (Reuters) - Italian tyre maker Pirelli (PECI.MI) is planning to announcee a multi-million dollar move to set up a production base in Mexico, its chief executive was quoted as saying on Monday.

In an interview with the Financial Times, Marco Tronchetti Provera said he saw growth intensifying "thanks to new investments in Mexico," but declined to discuss investment figures.

"For us it is more convenient to invest in Mexico because there are many carmakers investing there," he said, while lower labour costs in the country were another factor.

He said the plan for the base, that will supply the North American market, is not yet finalised.

"But in our picture it makes sense... to supply America from within (a country that is part of the North American Free Trade Agreement) instead of from Latin America," he said.

(Source: Reuters, Reporting by Karolina Tagaris)