The South Korean conglomerate Lotte Group is planning to invest US$30m in establishing its first wholly-owned subsidiary in China, according to local media reports.

According to reports, three Lotte companies, Lotte Japan, Lotte Confectionery Co., Ltd. and Lotte Chilsung Beverage Co Ltd., will invest jointly in the Chinese operation, with respective 34%, 33% and 33% participations in the venture.

The new operation is expected to produce xylitol gum, biscuits, chocolate, lie fallow food and ice cream.

Lotte Group is aiming for its Chinese operations to reach sales of CNY3.75bn (US$492.2m) by 2011, and to boost this to CNY8.33bn by 2016.