GS Caltex Co., South Korea’s second-largest refiner, said Thursday it has set up a wholly owned subsidiary in China in an effort to build its presence in the world’s No. 2 economy.

GS Caltex China, based in Beijing, is in charge of areas including lubricants, petroleum and petrochemicals, the refiner said in a press release.

The refiner first opened a regional Beijing office in 2007 before recently making it a wholly owned subsidiary, and also opened an office in Shanghai in June this year.

GS Caltex China will handle all operations of GX Caltex in China and help sharpen its competitive edge in the Chinese oil market, the refiner said.

GS Caltex expected it will post an estimated 1.2 trillion won ($1.1 billion) in sales in China this year.

Unlisted GS Caltex is an equal joint venture between GS Holdings Corp. of South Korea and Chevron Corp., the second-largest U.S. oil company. (Yonhap News)