LUXEMBOURG CITY, Luxembourg (June 10)—The European Investment Bank is evaluating a proposal to lend up to $39 million toward the modernization of a Pirelli S.p.A. plant in Brazil. Pirelli Pneus S.A., the Brazilian subsidiary, has drafted a $136.6 million plan to add radial capacity to its 25-year-old Feira de Santana facility. The factory, acquired by Pirelli in 1986 from Pneus Tropical, has a nameplate capacity of 1,200 units a day of bias-ply car, light truck and medium truck tires. Employment is 230. In a document posted on the EIB's Web site, the bank reports the project is "under appraisal."