ROME, Sept 9 (Reuters) - ITB Auto is set to take over an

idled auto components factory in northern Italy to produce

Chinese electric minicars with an investment of about 100

million euros ($117.3 million), the industry ministry said on

Tuesday.

The ministry made the announcement after chairing crisis talks

in Rome about the future of the Grugliasco plant near Turin,

currently owned by U.S. auto parts company Lear Corporation ( LEA )

.

Lear's Grugliasco plant is one of many suppliers hit hard by

the collapse of automotive production in Italy, which last year

dropped to a nearly 70-year low.

The ITB plan foresees the production of 20,000 minicars per

year and the re-employment of 200-250 of the plant's 376

workers, the ministry said.

"Today we are laying the groundwork for another (industrial)

crisis to be put on the path to recovery," Industry Minister

Adolfo Urso said.

"We will continue to monitor the protection of jobs and the

site's actual industrial revitalization, in close dialogue with

the company, local institutions, and trade unions," he added.

ITB hopes to close the deal by end-2025 and start production

in the first quarter of 2026, the ministry said.

The Fim-Cisl, Fiom-Cgil and Uilm trade unions, which took

part in the Rome crisis talks, cautiously welcomed the plans.

In a joint statement, they emphasised the need to help

workers not included in the relaunch of the factory, and called

on the ministry to check out the "financial and market strength"

of the would-be investors.

The minicars due to be made in Grugliasco are currently

imported from China and marketed by ITB Auto in Italy under the

Desner brand, unions said.

Both the ministry and trade unions said a new round of talks

would take place on October 9.

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