IMAX has signed an agreement to open a new theater in China.

The theater is to be installed in a new 16-screen multiplex in the city of Hangzhou, the capital of eastern China's Zhejiang Province. It is scheduled to open in late June.

The agreement was signed with Zhejiang Xinyuan Cultural Industry Group, a government-run business.

The Canadian company IMAX Corporation already has 26 theaters in China and is targeting 50 by 2012.

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