IMAX signed an agreement with Wanda Cinema Line that expands its footprint in China.

The agreement between IMAX and Wanda states that the North American entertainment giant will create 150 additional theaters with Wanda Cinema Line aside from its current 335 screens in China, according to LA Times. The construction will take place over the next six years. Nearly half of the new theaters may be fitted with IMAX’s new laser-projection technology starting at the end of 2018. 

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The new deal between the two companies represents Hollywood’s latest push into China. IMAX has been a major player in China's film business for about a decade and is investing significantly to grow its presence there.

IMAX chief executive Rich Gelfond said the expansion would generate significant box office returns for movie studios in Hollywood and China. According to him, China's cinema market had continued to grow even as the country’s economy had slowed down.

“In absolute numbers, it’s the fastest growth market in the world. If you compare the number of visits that Chinese people make to the movies compared with other parts of the world, it’s still a fairly embryonic market. So there’s a lot of organic growth to get,” Gelfond added.

China's movie ticket sales increased by almost 50 percent in 2015 to a record $6.78 billion. The country is expected to exceed North America as the number-one movie market in the world by 2017.

In addition to building large theaters, IMAX has been increasing the number of local-language films it screens. The company says it expects to release between eight to 10 Chinese titles in the country this year.

IMAX has more than 1100 theaters in 69 countries, including 335 in China which generates about a third of the company’s global box office revenue, Variety reported. This latest deal brings the number of its screens in China to 407.

TagsIMAX, Wanda, china, Wanda Cinema Line, 3D, IMAX screen, 3D movies, hollywood, chinese films, cinema theater, movie theater