11288 - ZAO Stora Enso II

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Environmental Review Summary

Project Number

11288

Company Name

STORA ENSO PAKADZHING BB, OOO

Date ERS Disclosed

Mar 27, 2002

Country

Russian Federation

Region

Europe

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 12, 2002
Signed : Jun 26, 2002
Invested : Oct 15, 2003

Sector

Paper Packaging Products (Including Boxes, Cartons, etc.)

Industry

other

Department

Regional Industry MAS LAC & EUR

Project Description

ZAO Stora Enso Packaging (the company, formerly known as ZAO Pakenso) is the Russian subsidiary of Stora Enso Packaging Oy (the sponsor, previously Pakenso Oy), a Finnish paper packaging manufacturer. IFC provided a loan to company in 1999 for the construction of a corrugated box production facility in Balabanovo, 100 kilometers south-west of Moscow. The facility is now operational. In order to satisfy increasing demand for its product, the company is undertaking a US$14 million expansion (the project) to increase in the company''s production capacity from the current 70 million m²/year to 105 million m²/year. The project expansion entails production hall, raw material warehouse and office extension for the operation of new converting machines (die-cutters and printers), together with additional space for new production and sales personnel, laboratory, design and pre-production processes and more room for maintenance purposes.The project also includes some new investments into the electricity distribution, compressed air and waste handling system.

Environmental and Social

The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

Corporate Policy
The Stora Enso Group has an environmental policy and implements an environmental management system based on ISO 14001. The Group complies with all regulations and is committed to continuous improvement throughout its activities. The Group minimizes waste through training, planning and developing appropriate production processes, using raw material, energy and water efficiently. It incorporates environmental aspects throughout the life cycle of its products, ensuring that suppliers have the same commitment to environment.

Land use changes
The expansion project will take place within the site of the existing facility. No additional land-take will be required.

Adhesive and ink characteristics
The adhesive used in the process is starch and contains no solvents. The inks are water-based and do not contain heavy metals.

Effluent treatment and disposal
Process washing water and sanitary effluent is conveyed to the municipal treatment plant. The project does not discharge into sensitive waters. The increase in effluent volumes resulting from the proposed expansion project will be within acceptable limits. Together with the local administration and other local companies, ZAO Stora Enso will undertake a project to retrofit the existing rainwater cleaning station, which is currently inadequate. The Company''s share of this retrofit, which is planned for completion by 2003, is expected to be 10%.

Solid waste disposal
Corrugated waste is recycled back into the process for paper and board production. Non-process waste (such as office waste) is disposed of via municipal landfill. The expansion project will not result in significant additional waste requiring off-site disposal, and includes improvements to existing waste handling systems.

Air/noise pollution
There are no material air emissions associated with the project.

Health and safety
Health and safety issues relate largely to noise from the box corrugator. The principal source of noise is the box corrugator. Noise reduction cabinets are installed on relevant machines and personal protective equipment is provided to workers.

Fire safety
The facility is equipped with a water reservoir, sprinkler system, smoke detector system and hand extinguishers.

Conclusion & Monitoring

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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