WALT Disney Co. clinched deal with a Shanghai company today, marking the launching of a much-awaited theme park project in China's largest city.

The deal was reached with Shanghai Shendi Group Co. Ltd., a company registered in August and inaugurated today for the development of Disney's Shanghai project.

The name of the company is apparently a combination of Shanghai's shorter Chinese name "shen" and first word of Disney's Chinese name "dishini."

An administrative committee was also inaugurated today for project management.

Shanghai's Disneyland received the green light from Chinese authorities last November. It was expected to cover a relatively small 4 square kilometers at a cost of 25 billion yuan (US$3.6 billion).