The Italian town and host of the children’s film festival will house a production hub and two state of the art cinemas.

Giffoni Valle Piana, the Italian town that hosts the annual youth film festival, has secured $27.5m (€20m) of local government funding to build a production hub and two cinemas.

The Multimedia Valley development aims to strengthen the film festival, now known as the Giffoni Experience, which celebrates its 40th anniversary this July. It will create a full service production hub that will provide training as well as production services, and will also include a film museum and two cinemas with a 1,000-seat capacity.

Construction is set to begin later this year for the infrastructure, which has a total cost of $42.6m (€31m) and it is hoped it will be completed by 2013.

The Giffoni Experience, which runs July 18 – 31, will include a screening of exclusive footage from Italy’s first 3D CGI production, Winx Club 3 D – Magica Avventura, ahead of its release on October 29. It will also screen Disney’s Sorcerer’s Apprentice, in advance of its August 25 Italian release.

Actor Elijah Wood will be on hand as the festival screens the Lord Of The Rings trilogy while Oscar-winning director Giuseppe Tornatore will give a cinema master class to kids and receive Giffoni’s Truffaut award.

The first titles for the upcoming edition include a rich mix of new titles from around the globe including The Indian by Ineke Houtman (Holland); Rafiki by Christian Lo (Norway), Garuda In My Heart by Ifa Isfansiah (Indonesia); Storm by Giacomo Campetto (Denmark), The Perfect Game (USA); East And Angels by Lars Berg (Norway), Oscar And The Lady Pink by Eric-Emmanuel Schmitt (France/Belgium/Canada), Themba by Stefanie Sycholt (Germany/South Africa); Blessed by Ana Kokkinos (Australia), 13 Semester by Frieder Wittich (Germany) and Cracks (pictured) by Jordan Scott (UK/Ireland).

The first week of the festival is dedicated to fare for kids aged 3 -12 years old; the second week to fare for young adults aged 13 - 23. A 2,800 all-kid jury will judge this year’s 160-picture selection

The full line up will be announced at the beginning of July.