Lucasfilm Ltd, the company floated by Star Wars creator George Lucas, has set up a new studio in Singapore, said a Cinescape Online report.

The new venture, Lucasfilm Animation Singapore, will produce movies, television shows and video games in a digitally animated format, said the report.

Lucasfilm Ltd holds 75 per cent stake in the company, while the rest of the pie is with Creative Technology Ltd, a group of private Singapore investors and the government.

In a press release, Lucas said: "I've been a fan of Asian animation and illustration all my life. Asian cinema has had a particularly big impact on a lot of my work. When we began thinking about developing new ways to explore the craft of animation, it seemed a natural step to combine the two."

"By having a base in Singapore, we can create a new style of animation that will blend east and west, and offer something not seen before."

Lucasfilm Animation Singapore may eventually employ up to 300 people and is planning to be working on its first major project by the middle of 2005.

Gail Currey, vice president and general manager, Lucasfilm Animation, will lead the Singapore-based creative team.

Lucasfilm Animation Singapore becomes George Lucas' second such facility, having formed Lucasfilm Animation in California last year.

Over the past several years, Lucasfilm has been looking to enter the animation arena, especially as the same tools used to create high-end visual effects at Lucas' Industrial Light & Magic are increasingly utilised to create animated hits like Finding Nemo and Shrek 2 at other studios.