LVMH Group and Ningxia Farms Agribusiness Group signed a cooperation agreement in Yinchuan, Ningxia Hui Autonomous Region, on May 4, setting up the largest area for sparkling wine production in China.

The region, just east of Helan Mountain, has been a nationally protected area for wine production. LVMH is the world's largest group of luxury production and sales, with brands such as Louis Vuitton and Moet & Chandon Champagne in its portfolio. It leads global sparkling wine production. The group has been looking for wine production areas in China since 2008 before choosing to work with Ningxia Farms Agribusiness. The two companies will operate a 1,000-acre vineyard together, while LVMH will build a winery.

Ningxia hopes the cooperation will raise the quality of its wine from the eastern Helan Mountain area, as well as promote the international profile of its wine brands. LVMH will raise the standards of grape planting, production technology and management, as well as be a potential draw for international investors to the region.