Shanghai lures animation biz heavyweights

The Dream Center in Shanghai, with theaters, shops and more, plans to be complete in 2016

By DAVID BARBOZAand BROOKS BARNES

Shanghai's motto, "Asia's foremost industrial hub," looks ready to secure one more industry to boast about-animation.

Initiatives to make Shanghai an animation hub are seen in moves by the municipal government to turn the former site of Expo 2010 Shanghai China into an animation industry center. DreamWorks Animation SKG Inc. of the U.S. has already finalized a decision to build a production complex in the city.

Shanghai has defined itself over recent decades by attracting top companies into the area.

Film-production companies, TV stations and the latest video-production studios line the banks of the Huangpu River that runs through the heart of the city.

When the expo site over haul is complete, it will be an entertainment complex of theaters and museums. It will also have shopping centers and restaurants.

The 7.4 sq. kilometers of space dedicated to the project is located in Xuhui District. The main attraction will be Oriental DreamWorks' facilities.

The 20 billion yuan ($3.2 billion) project is a joint venture between DearmWorks and Xuhui District. In addition to the large entertainment facility, the two will become partners in the creation of an animation production company. The new company's inaugural production will be an installment of the popular "Kung Fu Panda" series, which is planned to be premiere at the facility's 2016 grand opening.

"We will work with a variety of partners to turn the place into a hub for research and development of the latest in animation technology, production and copyright business," said a local official in charge of attracting foreign investment into the district.

Xuhui District is one of Shanghai's several administrative areas located in the heart of the city. In terms of political clout, it is considered on par with the main cities of outlying areas. The average income of a Xuhui resident is the highest in the city and the area is known for fashion and culture.

The Oriental DreamWorks project is anticipated to draw 20 million visitors a year. In the district's central business area, another major commercial facility, the 100,000-sq.-meter Shanghai Film Plaza, will be built. It is scheduled to open sometime after 2013. The project will also work to transform the area into a top software hub.

Just before anti-Japanese demonstrations erupted in early September, the Xuhui District government held discussions in Tokyo, trying to attract Japanese companies known for their clout in animation to do business in Shanghai.

The district is already home to many Japanese companies, including Mitsubishi Chemical Holdings Corp., Fast Retailing Co., Sega Corp., Saizeriya Co., and Benesse Corporation.

Ever since the anti-Japanese demonstrations, Chinese overtures to Japanese companies have stalled. However, a source with Yadoumaru Project Co., the advertising agency involved with Xuhui District's・・・・・・

Resouce： The Nikkei Weekly