By Brendan Swift
Queensland-based visual effects and animation company Photon has launched a joint venture with China's largest privately owned exhibitor, SMI Corporation.
The deal follows the sale of Postmodern Sydney to Deluxe in April and comes as the post-production sector remains under intense pressure.
SMI has acquired an 80 per cent stake in the new business for $US4.54 million with Photon creative director Dale Duguid holding the remaining 20 per cent, according to a letter of intent released in late-April.
The new VFX and post-production business, SMI-Photon, will integrate Photon's vocational skills and technology with SMI’s substantial China-based facilities, which include a 2,000 seat state-of-the-art training and production facility in Beijing.
Duguid, who will lead the new company, said the venture would "deal with the realities" the industry is facing by melding China's lower costs with Australian expertise.
"I take great pride in exporting Australian expertise to China, so that together we may not only create a formidable local talent base in the region, but ultimately cement SMI-Photon as the global leader in technological advancement in both production and post-production," Duguid said.
The China economy has continued to grow strongly despite the global slowdown with the local box office lifting 43 per cent last year to RMB6.206 billion.
"Our vision is to become the country’s leading integrated entertainment and media company and SMI-Photon marks the next major step in creating a strong, vertically integrated business in this sector," SMI chief executive Margaret Xiao Ping said in a statement.
Deguid said he expects to split his time equally between SMI-Photon's Australian and Chinese offices. Photon has worked on major films and TV productions such as Australia, Superman Returns and Animalia.
SMI Corporation is focused on production, distribution and licensing of entertainment-related content for movies, television drama series, documentary and information or entertainment programs, and the movie theatre business.
SMI-Photon CEO Dale Duguid and SMI Corporation CEO Margaret Xiao Ping