Regional authorities in the Swedish Stockholm-Malardalen area will set up a new film centre, 'Stollywood', which - when in full operation - will co-finance up to 10 feature films annually.

'Today 90% of all Swedish actors and film companies are based in this region, yet only 10% of of domestic films are shot here. We want to change that,' said chairman of the board, Anders Ekegren, of Filmpool Stockholm-Mälardalen.

The new film centre will be the fourth in Sweden, after Film i Väst at Trollhattan - which is Sweden's largest production company - Filmpool Nord-Lulea in northern Sweden and Film i Skane-Ystad in the south.

Filmpool Stockholm-Mälardalen was originally planned to launch in January 2007, but was delayed as local politicians in Stockholm decided to freeze its subsidy. Instead it will be in business by the turn of the year.

The new centre will participate in major feature film productions, in collaboration with private investors. It will back a development fund for short films and documentaries, also supporting new talent, research and education.

It will also include Stockholm Film Commission, promoting the capital of Stockholm and the Mälardalen region to international producers, and servicing incoming productions. The Swedish Film Institiute is co-funding the project.