Moet Hennessy, the wine and spirits arm of France's LVMH luxury group, said Thursday it was planting its first vineyard in China to produce a premium sparkling wine.
The 66-hectare (163-acre) vineyard will be planted as a joint venture with the publicly-owned agricultural development firm of the Ningxia Hui autonomous region in northwestern China.
The maker of Moet and Chandon champagne will build and own a facility near the vineyard to produce the high-end sparkling wine, which is to be sold locally under the Chandon label, LVMH said.
Moet Hennessy has produced top-end sparkling wine under the Chandon brand using traditional methods in California and Argentina.
China's rapid growth has made it key market luxury goods makers in recent years.