French wine estate Chateau Lafite Rothschild, which produces the world's most expensive wines, has started construction on its first Asian production base in Penglai, a city on the easternmost tip of the Shandong province.

A groundbreaking ceremony was held on March 11. It is not yet known when the construction will be finished.

After visiting many regions in Asia over the past 15 years, Chateau Lafite technicians finally chose Penglai. The city has advantageous climate and geographical conditions,?and is known as one of China's largest wine-producing areas.