Domaines Barons de Rothschild Lafite, the fine wine manufacturing firm owned by the Rothschild family, has established its first winery in Asia through a local partner in China. 

The new production site is the company's third in the world, after Chile and Argentina, and sits on a 1.74-hectare winery in Penglai, Shangdong province. For the project, Domaines Barons de Rothschild Lafite partnered with CITIC East China Group.

The first phase of construction is expected to cost the firm RMB100 million ($15.8 million), it said in a statement. No target completion date was announced.

According to International Wine and Spirit Research, China is the fifth largest market in the world for premium wine and the accelerated growth of the country's high net worth population is touted to increase global consumption further in the next five years. Chinese consumers have also developed an appreciation for luxury products and services, making it a viable market for premium wines.