26826 - China Glass II

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Environmental & Social Review Summary

Project Number

26826

Company Name

CHINA GLASS HOLDING CO LTD

Date ESRS Disclosed

Apr 11, 2008

Country

China

Region

East Asia and the Pacific

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 2, 2008
Signed : Jun 4, 2008
Invested : Jul 31, 2008

Sector

Glass and Glass Products (Including Glass and Mineral Wool)

Industry

Manufacturing

Department

Regional Industry - MAS Asia & Pac

Project Description

The project comprises implementation of a series of projects intended to reduce use of energy and water and reduce emissions to air of sulphur oxides and particulate matter at three sites of China Glass Holdings. These projects are:
- construction of a 3MWe waste heat recovery-driven electricity generation system at the Suhuada factory at Suqian;
- cold repairs of two furnaces at the Suqian, and Qinchang (Beijing) sites; these cold repairs will enhance energy efficiency, facilitate addition of coating technology to produce energy efficient low-E glass and will include secondary control of sulphur dioxide (SO2) and particulate emissions;
- closure of one city center float-glass production line in Weihai, and construction of a replacement line on an existing site situated on an industrial estate outside the city;
- addition of treatment systems to permit reuse of sanitary waste water in process cooling systems at all three sites.

Overview of IFC's Scope of Review

This would be IFC’s second project with China Glass Holdings (CGH or the company), following on from a project committed and disbursed in 2007. IFC’s review of the 2008 project included a review of CGH’s progress against the Environmental and Social Action Plan agreed in 2007, visits to the three sites at which the 2008 project will be implemented to discuss the projects with CGH’s central technical team and site-based local management. The Environmental Impact Assessment prepared to examine the impact of construction of the new line at Weihai was also reviewed.

IFC’s review of the 2007 project included environmental review visits to all of China Glass Holdings’ six manufacturing sites.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Environmental and Social Assessment and Management Systems;
- PS2: Occupational Health and Safety
- PS3: Pollution Prevention and Abatement.

No significant off-site impacts are expected, limiting the relevance of PS4 Community Health and Safety. The project will be implemented at three established industrial sites, therefore issues related to PS5: Land Acquisition and Involuntary Resettlement, PS6: Biodiversity Conservation and Sustainable Natural Resource Management, PS7: Indigenous Peoples and PS8: Cultural Heritage are not encountered.

The key environmental and social issues associated with this project are CGH’s management of social and environmental issues, particularly with reference to the Action Plan agreed with IFC in 2007 and in compliance with local regulatory requirements, environmental assessment and planning processes for the new line, use of energy and water and air emissions.

The project’s objectives to conserve use of energy and water in manufacturing, manufacture of energy efficiency products and secondary control of emissions to air are unambiguously environmentally beneficial. Potential adverse impacts arising from the move of the Weihai line from the city center to out-of-town location are reversible and readily mitigable, and the net effect of the project is positive. This is therefore a social and environmental Category B project.

Environmental and Social Mitigation Measures

The Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP) for IFC’s first project with the company may be viewed in English on IFC’s website. Please click here.

A Chinese version will be displayed with this document at the disclosure locations in China.

This ESRS will describe areas in which the review of scope described above adds to the information presented in these documents prepared in early 2007.

- Social and Environmental Assessment and Management

Assessment:

CGH commissioned an environmental impact assessment as required by the Chinese authorities, to identify the environmental effects of construction of additional glass manufacturing capacity alongside its two recent lines in the Weihai industrial zone. This is a comprehensive document among other things modeling the project’s impacts on ambient air quality around the facility. Projects at the other sites will reduce environmental impacts in long -established manufacturing sites and formal environmental assessment is not required.

Management, Organization and Training:

CGH’s progress against the 2007 ESAP is summarized in the updated ESAP disclosed with this ESRS.
While consolidation took a little longer than anticipated, in summary, CGH has established an appropriate environmental and occupational health and safety management structure, trained staff at all sites in OHS and environmental management techniques and has commenced implementation of management systems to control these issues at all sites. Progress in these areas is proceeding according to the schedule agreed between IFC and the company in 2007.

- Labor and Working Conditions

Labor relations are substantially managed at site level, though there is a CGH Human Resources policy:

All employees have written contracts of employment, which may be open-ended, renewable 1-year contracts or longer term contracts depending upon position. These contracts define the rights and responsibilities of both parties. Remuneration comprises a basic salary, performance-related bonus and a year-end bonus, details of which are documented in the employment contract. Working hours in this continuously operating industry are based on a nominal 40 hour week, (5 x 8 hour days), with four groups working three shifts: overtime working is very rare. CGH’s youngest employee is aged 18 years.

No manufacturing site makes any distinction in salary or benefits on the basis of worker residency registration or any other characteristic unrelated to the requirements of the job. Employees are able to join a trade union, and union membership does not attract discrimination by CGH. CGH has a three-strand labor grievance process, in that employees are able to air grievances through the sub-union branch representing the worker’s normal workplace, through the administration office of the company using a complaints box, and directly to the HR department of the company.

CGH has enhanced occupational health and safety since 2007in that best practice protective equipment for persons handling glass (gloves, arm-protecting gauntlets, and body and leg-protecting aprons) has now been provided throughout the company, and work is ongoing in development of formalized OHS management systems.

- Pollution Prevention and Abatement

Emissions to Air:

Monitoring of emissions to air from glass melting furnaces has shown particulate concentrations ranging from 90 to 365 mg/Nm3, and SO2 concentrations from below detection limits at one site with secondary control, to around 1360 mg/Nm3. In some cases particulate emissions exceed local limits and in all cases exceed IFC guideline values. In respect of SO2 emissions, furnace are generally in compliance with existing IFC and local emissions standards, though reduced emissions are required on rebuild.

At the three lines subject to repair/rebuild through the project under discussion, in Suqian, Weihai and Qinchang, alkaline wet scrubbers will be used to control emissions of SO2 and particulate matter. Expected scrubber emission limits of SO2 and particulate will be < 300 and < 30 mg/Nm3 respectively, well within IFC and local limits.

NOx emissions from the furnaces have not been systematically measured at all sites due to limitations on available metering in some cases. At Qinchang and Suhuada, NOx emissions from the furnace and effects on ambient concentrations of NOx are not known. These will be measured during 2008, and NOx control measures applied if necessary.

Ambient NOx levels around the new Weihai site, which arise from CGH’s two existing lines and another industry nearby have been measured and are around 21% of the local air quality limit. Since the additional NOx being added to the airshed from the project is less than half the existing discharge, an increase in ambient NOx to more than 30% of the local air quality limit is unlikely.

Energy Efficiency in Manufacturing:

The furnace rebuilds and relocations will improve melting energy efficiency. Some of this is achieved almost automatically by replacement of worn refractory, but a number of energy efficiency measures have been incorporated into furnace design, which will result in a reduction in specific energy use by around 15% to levels reflective of good practice in China. In addition, an improvement in yield is anticipated which will also improve overall energy efficiency in manufacturing.

The rebuild will increase use of variable speed drives for large cooling and combustion air fans and as a result savings in electricity are anticipated.

At Suqian, the rebuilt line is one of three present at the site. Waste heat from one furnace is recovered as steam, essentially for space heating. Waste heat from the two other lines will be used to generate high-pressure for use in a steam turbine for electricity generation; it is anticipated that 2.8 MWe can be delivered reliably by this heat recovery scheme.

Product Energy Efficiency:

Coating sections will be added after rebuild which will enable the production of low emissivity (Low-E) glass which has lower heat losses than conventional glass when used in building glazing applications. Thus, the new products manufactured after rebuild will help to improve building energy efficiency.

Other Resource Efficiency Issues:

All three sites will include systems to treat sanitary waste water to the degree that it can be reused in process cooling systems.

Stakeholder Engagement

This ESRS, the ESRS associated with the earlier IFC project and the updated Environmental and Social Action Plan will be disclosed locally to the three relevant projects sites. Disclosure addresses and the respective contact details are listed below:

Suhuada Suqian:

Mr.Huangyouzhong
No.288 Yunhe North Road, Suqian, Jiangsu Province
Telephone: 0527-4212588

New Technology Weihai:

Ms.Zhangqingbo
No.98 Qingdao Road (M), Weihai Economic & Technology Development Zone, Shandong Province
Telephone: 0631-5989196

Qinchang Beijing:

Mr. Mengfanqi
No.52 East Street, Nankou, Changping District, Beijing
Telephone: 010-89791524

Client Documentation

File Name	Actions
ESAP CGH II Final.pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
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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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