Asian Hollywood in Bunbury

Movie moguls: Alan Lindsay and Kerr Xu. Picture: Hayley Davis/WA News

Bunbury could become the "movie capital of Australia" through a five-storey studio and training facility on the back of $160 million in film deals.

Bunbury production company Vue Group will today sign a joint venture agreement for the studio with Shanghai Hippo Animation.

Hippo chief executive Kerr Xu - widely dubbed "the new Walt Disney" - said the decision ended a five-year global search for a new studio venue.

In Perth yesterday Mr Xu, who said his company was worth $US300 million, conceded the quiet South West city was an unusual choice.

But it gave close access to production partner Vue and a big pool of local talent, as well as beautiful scenery and weather for filming.

Mr Xu said he ruled out established movie markets because they were too old-fashioned to broadly accept the trend towards computerised live action films.

The Vue-Hippo joint venture intends aggressively pursuing this genre, responsible for blockbusters such as Avatar.

"I believe that if we work together, Bunbury can become a film capital for the next generation, not just for Australia," Mr Xu said. "I don't think we can replace Hollywood but Shanghai and Bunbury - that's a good marriage for building the Asian Hollywood."

The facility will train about 300 students a year, including about half from China, and hire up to 200 professionals to co-produce several Hippo International movies.

Vue and Hippo already have contracts worth $160 million for animated films, with one already playing in Chinese cinemas.

The one- and three-year production courses, to include animation and special effects, would run in conjunction with an as-yet unnamed Chinese university.

Students would also work with 1000 Hippo staff in Shanghai.

Preliminary studio plans include a 4500sqm footprint with movie and production areas, visual effects and animation departments, a retail and hospitality strip and hotel or home units.

Two sites in Bunbury are being looked at for the studio, proposed to be finished in 18 months.

Vue managing director Alan Lindsay said the "audacious" plan came from years of hard work. He moved his company from Melbourne four years ago in a deliberate bid to work in the same time zone as China.

"This is my ninth year on the ScreenWest board, so I know the potential for the screen industry here and my partner (Helen Clucas) and I want to make it really bloom," he said.

Arts Minister John Day said the agreement gave WA and Bunbury the chance to become a centre of excellence for animation and special effects.