Argentina will build its own film industry hub, to be modeled after Hollywood, on an island south of Buenos Aires.
"We want (the film industry) to have as large a reach as Hollywood," Cristina Kirchner told dozens of actors during a televised ceremony.
The studios are slated to be built on Demarchi Island, the site of an abandoned industrial complex complete with shipyards.
A call for bids will come within the next 30 days, she added.
Kirchner also announced that the limit on subsidies for Argentine cinema will be raised from $648,000 to $1.2 million.
Argentina, which boasts one of the most successful film industries in the region, released ninety-nine films in 2011, and 76 so far this year. It is the world's fourth largest exporter of audiovisual content, according to Kirchner.
The country has also been recognized internationally for its productions, winning Oscars for "The Official Story" and "The Secret in Their Eyes."
Kirchner's announcement comes amid reports that Italy's legendary Cinecitta studios, built in 1937 to compete with Hollywood, could be torn down to make way for real estate projects.