L.A.-based Vanguard Animation and IDT Entertainment of New Jersey have launched production of Space Chimps – a US$40-million, CG-animated feature and launching pad of a new 30,000-square-foot studio now under construction in Burnaby, BC.

The studio has hired some 50 staff over the past two months and, at peak production on Chimps, hopes to employ 120 to 150 animators, technicians and other crew.

‘We’ve had to hire key people from outside of Vancouver who have the expertise,’ says coproducer Curtis Auspurger (Valiant, Scooby-Doo), ‘but we will be tapping into the local visual effects expertise and the gaming industry.’

Vanguard and IDT hope to turn out another five films over the next seven years.

IDT also owns animation shops in Burbank, Israel and DKP Effects in Toronto. Vanguard’s first release was the U.S./U.K. copro Valiant, which came out via Disney in 2005. It is led by CEO and Chimps exec producer John Williams (Shrek).

The companies were drawn to B.C. by its DAVE visual effects and animation tax break, and by its proximity to L.A. and other production facilities. Auspurger and Williams have also been pushing government officials for further tax cuts.

‘The tax incentive structure and language, was written specifically for live-action films,’ says Auspurger. ‘We’re pushing for a definition that will equate ‘key animation’ with ‘principal photography.”

‘We’re taking a live-action approach to financing.’

Animation tools used at the studio include Maya, Renderman and Nothing Real. Vanguard runs the studio now, but will hand it over to IDT upon completion of Chimps.

The movie is a family comedy about the descendants of the first chimps NASA sent into space and will be in production for 100 weeks. It’s directed by Norton Virgien (The Rugrats Movie) and Donovan Cook (Mickey, Donald, Goofy: The Three Mouseketeers) and inked by Kirk DeMicco (Racing Stripes). Morris Berger, Stephen Brown, Janet Healy and Jerry Davis exec produce for IDT.

Chimps is set for a summer 2008 release through Twentieth Century Fox.