A wine chateau covering 10,000 square meters is nearing completion in the project area of COFCO in Yongning County, at the east foot of Helanshan Mountain. Xie Chen, the official of Yongning Forestry Bureau said on Sunday that 7 companies, including Ningxia Delong Wine Limited Company and Moët Hennessy (France), have invested 3 billion yuan in the construction of the Wine Chateau.

Located in a prime grape growing region, Yongning, along with Ningxia’s entire grape planting region, have long been the mainstays of China’s large-scale wine-selling industry. It is estimated that the gross profit for one ton of bulk wine is only 2,000-3,000 yuan, while the price of medium-to-high grade wine is more than 50,000 yuan.

To maximize profits, Yongning established a world class grape industrial region and Cultural Corridor to enlarge the grape planting area to 120,000 thousand mu and reach an output value of 1.5 billion yuan. In recent years, Yongning has focused on attracting investment and is committed to building a wine industrial cluster gathering processing, storage, logistics, cultural tourism and catering.

To date, Yongning’s grape planting area is over 100,000 mu and the wine processing accounts for 60 percent of Ningxia’s total.