Lotte Chemical said on July 15 it will establish a petrochemical joint venture with GS Energy.

The two companies signed an agreement to form a JV, tentatively named Lotte-GS Chemical Co., this year to produce chemical compounds like bisphenol A (BPA) and C4 fraction.

Lotte Chemical will have a 51 percent stake in the joint venture, with the rest to be owned by GS Energy.

The two companies will invest a total of 800 billion won ($677 million) by 2023 to build a plant in Yeosu, 450 kilometers south of Seoul, that can produce 200,000 tons of BPA and 210,000 tons of C4 fraction products a year.

Lotte Chemical said the JV is expected to post 1 trillion won in sales and 100 billion won in operating profit, while creating 7,700 jobs.

By Ram Garikipati and newswires (ram@heraldcorp.com)