US-based SI Group said Friday that it plans to invest $30 million to build an additional phenolic resin manufacturing site in the Nanjing Chemical Industry Park (NCIP) in China.

The new site will have an initial capacity of 30,000 tpy and the potential for expansion to reach 70,000 tpy.

The facility is set to commence operation in May 2013, and will produce phenolic resins in lump, pastille, liquid, and powder forms to serve the rubber, abrasive, friction, impregnation, and refractory markets.

The location was selected taking into account SI Group customer needs and business processes, including strong logistics and access to raw materials, the company said.

SI Group recently announced the opening of a state of the art modern rubber and industrial phenolic resin application laboratory at its Songjiang plant, it said.

The overall investments in the lab total $1.5 million.

The facility stands as the global standard for research and development of resin products and further enhances SI Group's position as an industry technology and innovation leader, according to the company.

Also at its Songjiang location, SI Group invested $3 million for what it described as a cutting-edge waste water treatment plant.

The construction of the new resin facility in Nanjing and the company's plan to further expand resin production capacity in 2012 are in step with SI Group's accelerating growth strategy for China, the company notes.