20 June 2007 - South Korea's Lotte Group is planning to invest USD 30 million to establish its first wholly-owned subsidiary in China.
According to local press reports, Lotte Japan, Lotte Confectionery Co., Ltd. and Lotte Chilsung Beverage Co Ltd. will take up 34%, 33% and 33% of the total investment in the Chinese subsidiary respectively.
The new subsidiary is expected to produce xylitol gum, biscuits, chocolate, lie fallow food and ice cream.
Lotte Group is targeting sales of around 3.75 billion yuan (USD 492.2 million) in China by 2011, and sales of 8.33 billion yuan (USD 1 billion) for 2016.
In January, Lotte’s confectionery arm reached a deal with Hershey Co. to make candy for the U.S. chocolate giant in China.
Lotte also opened a chocolate manufacturing line in Shanghai in 2006.