Chinese winery giant Changyu Group set up a joint venture company, L&MHOLDINGS (L&M) in France, marking a further step in its expansion into overseas markets, according to an announcement issued by Changyu on March 20.

The company is ventured by Changyu's subsidiary in France and Advini Company, a well-known winery in France. Changyu owns 55 percent stakes of L&M with an investment of 5.77 million euros ($6.51 million), accordingly.

The newly established company is a significant move for Changyu in its efforts to spread its brand name globally, obtain high-quality assets in France and further expand its wine industry.

France is known as the world's wine center and French wines are the largest source market for imported wines in China. Changyu has been the largest wine producer in China for more than 120 years, and Advini also has a history of more than 150 years. Therefore the two sides have great potentials in grape cultivation and wine making.

Zhou Hongjiang, the CEO of Changyu Group noted at a press conference on March 21 that as the only listed wine company in France, Advini Company enjoys a good reputation and a standardized management model in the industry.

It is hoped that the win-win cooperation will help to enhance Changyu’s brand influence at home and abroad.

The establishment of L&M also means that Changyu has taken another chateau under its ownership, Chateau Liversan, the third winery purchased by Changyu in France.

Chateau Liversan, situated in the legendary Bordeaux region, covers an area of 103 hectares, among which 51 hectares are planted in vineyards, with an average age of 30 years and an annual output of 350,000 bottles.

In 2013, Chateau Liversan, was rated as one of France's top15 mid-level chateaus, signifying its high brand awareness and reputation.

The joint venture offers Changyu a more economical way to expand its overseas market, which can help the company share benefits and risks with its partners in overseas markets, added Sun Jian, the general manager of Changyu Group.

To date, Changyu boasts three chateaus which can be managed together to greatly reduce its costs in labor, procurement and logistics and further promote coordinated cooperation.

Officials in Changyu Group pose for a group photo. [Photo provided to chinadaily.com.cn]

Zhou Hongjiang, the CEO of Changyu Group shares his opinions on the French joint venture winery L&M at a press on March 23. [Photo provided to chinadaily.com.cn]

Chateau Liversan, situated in the legendary Bordeaux region in French is purchased by Changyu Group. [Photo provided to chinadaily.com.cn]