US-based DreamWorks Animation today said it will produce "Kung Fu Panda 3" in China and the two nation's new joint studio, "DreamWorks Oriental," will build a ambitious $3 billion entertainment center in Shanghai called "Dream Center," reported Agence-France Press.
The new ventures come after US film giant Disney announced plans to build a $3.7 billion theme park also in Shanghai, which is set to open in 2015, said AFP.
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The move is also a response to the massive popularity of the Kung Fu series in China, with box office revenues there totaling some $74.6 million, according to China's Xinhua, prompting DreamWorks to pursue work with Chinese partners.
The US film giant agreed to produce the latest Kung Fu movie in China in cooperation with China Media Capital, Shanghai Media Group and Shanghai Alliance Investment, according to the Associated Press. The film's release is set for 2016.
The new Panda action movie will be produced by the new $330-million DreamWorks Oriental Film & Television Technology Company, 55 percent of which is owned by Chinese firms and 45 percent owned by DreamWorks, said AP.
The studio deal, announced in February, was sealed a signing in Shanghai today, said Xinhua.
The studio aims to produce three big films a year, according to AFP.