French wine trader, Castel Freres, has announced a joint-venture with Chinese producer, Changyu Wine Group, to create a Chateau Castel-Changyu brand.

The two partners plan to develop high-quality red wines from 130-hectares of young vines, using new vinification facilities.

Based at Yantai, in the eastern coastal province of Shandong, Changyu will have a 70% stake in the venture and Castel the remaining 30%.

In the long-term, production could reach one million bottles with between 150,000 and 200,000 bottles bound for markets outside China.

Separately, Castel is to launch four French wines on the Chinese market - 2 AOC Bordeaux, 2 Pays d'Oc wines (a cabernet-sauvignon and chardonnay) and a table wine.

Castel and Changyu already jointly run a bottling plant in China, 51% owned by the French trader.