Disney is creating a new animation unit to produce feature film sequels to movies it had made with Pixar, according to Reuters. The first, arriving in 2008, will be the theatrical feature "Toy Story 3," according to studio Chairman Dick Cook. The new unit will be located in Glendale, California, near its animation division headquarters in Burbank. "We’re not falling on our swords anymore … This is a new beginning for feature animation," Cook says. Disney has sequel rights to any movies produced by Pixar under their current agreement. "Cars" will be their last together before they part ways. Disney’s first computer animated feature "Chicken Little" will be in theaters July 1st.