Environmental & Social Review Summary
Project Number
7101
Company Name
KIA KERAMIK MAS, PT
Date ESRS Disclosed
Feb 5, 2010
Country
Indonesia
Region
East Asia and the Pacific
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Feb 29, 1996
Signed : Apr 29, 1996
Invested : Jun 28, 1996
Sector
Glazed Ceramic Tiles
Industry
Manufacturing
Department
Regional Industry - MAS Asia & Pac
Project Description
- 2 - November 15, 1995
Project Name Indonesia-KIA Keramik Mas
Region Asia
Sector Cement and Construction Materials
Project No 007101
1. This project involves the expansion of ceramic roof tile production by a company which belongs to the same group (Ongko Group) as another company in which IFC is already an investor since 1992. The recent IFC investment in KIA Serpih Mas was to expand production of ceramic floor tiles. This proposed new investment in KIA Keramik Mas would expand roof tile production from 18.6 million pieces per year to 87.2 million pieces per year. The expanded capacity would be achieved by adding one new production line in the existing factory at Cileungsi, four lines at a new facility near Karawang, and a production line at a new factory near Surabaya. The new factory at Karawang will be located in an existing industrial estate. The new factory at Surabaya will be built near an existing industrial operation on land that has been purchased by the project sponsor. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
2. Environmental and occupational health and safety issues that were of particular concern during IFC’s environmental review of this project included:
· air emissions from the kilns;
· liquid effluents;
· employee exposure to dust and glaze aerosols;
· use of lead-based glazes and pigments.
3. Air emissions from the kilns are not expected to have a significant adverse impact on air quality because natural gas is being and will be used at the existing factories as well as the proposed new factories. Environmental monitoring data submitted in accordance with government requirements indicate that the wastewater treatment plant at the existing factory at Cileungsi is operated in compliance with Indonesian water quality regulations. A filter press will be installed at Cileungsi to ensure that total suspended solids in the effluent is in compliance with World Bank environmental guidelines. Wastewater from the new Karawang factory will be treated in the industrial estate’s central treatment facilities, which are adequate to handle the waste load. KIA Keramik Mas’ facility will be able to meet the pretreatment requirements of the estate’s wastewater treatment system. The wastewater treatment plant at the new factory near Surabaya will be identical to the one in operation at the existing factory at Cileungsi.
4. KIA Keramik Mas provides a safe working environment with appropriate measures to reduce or eliminate worker exposure to dust, noise, and aerosols. Lead-based raw materials are used in only one color line at the Cileungsi factory, representing about 15-20% of total production. The material contains lead monosilicate, which is far less toxic than lead oxide. The most recent water quality monitoring reveals that lead is not detectable in the effluent. The project sponsor’s Research and Development Department is working with major suppliers to procure materials that further limit the amount of lead monosilicate in the raw materials.
5. The project sponsor operates several small clay quarries in 17 concessions covering about 118 ha total. Three-year renewable concession rights are stipulated for use only in ceramic tile production. Additional clay is purchased from time to time from other clay concession holders. Reclamation programs include restoration of a layer of topsoil, and planting of vegetation.
6. Based on the findings of its environmental review, IFC’s Environment Division has determined that the existing and proposed facilities are and will be operated in compliance with local laws and regulations and World Bank environmental guidelines. The project sponsor will be required to submit an annual monitoring report to IFC to verify ongoing environmental compliance.
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Indonesia-KIA Keramik Mas
Region Asia
Sector Cement and Construction Materials
Project No 007101
1. This project involves the expansion of ceramic roof tile production by a company which belongs to the same group (Ongko Group) as another company in which IFC is already an investor since 1992. The recent IFC investment in KIA Serpih Mas was to expand production of ceramic floor tiles. This proposed new investment in KIA Keramik Mas would expand roof tile production from 18.6 million pieces per year to 87.2 million pieces per year. The expanded capacity would be achieved by adding one new production line in the existing factory at Cileungsi, four lines at a new facility near Karawang, and a production line at a new factory near Surabaya. The new factory at Karawang will be located in an existing industrial estate. The new factory at Surabaya will be built near an existing industrial operation on land that has been purchased by the project sponsor. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
2. Environmental and occupational health and safety issues that were of particular concern during IFC’s environmental review of this project included:
· air emissions from the kilns;
· liquid effluents;
· employee exposure to dust and glaze aerosols;
· use of lead-based glazes and pigments.
3. Air emissions from the kilns are not expected to have a significant adverse impact on air quality because natural gas is being and will be used at the existing factories as well as the proposed new factories. Environmental monitoring data submitted in accordance with government requirements indicate that the wastewater treatment plant at the existing factory at Cileungsi is operated in compliance with Indonesian water quality regulations. A filter press will be installed at Cileungsi to ensure that total suspended solids in the effluent is in compliance with World Bank environmental guidelines. Wastewater from the new Karawang factory will be treated in the industrial estate’s central treatment facilities, which are adequate to handle the waste load. KIA Keramik Mas’ facility will be able to meet the pretreatment requirements of the estate’s wastewater treatment system. The wastewater treatment plant at the new factory near Surabaya will be identical to the one in operation at the existing factory at Cileungsi.
4. KIA Keramik Mas provides a safe working environment with appropriate measures to reduce or eliminate worker exposure to dust, noise, and aerosols. Lead-based raw materials are used in only one color line at the Cileungsi factory, representing about 15-20% of total production. The material contains lead monosilicate, which is far less toxic than lead oxide. The most recent water quality monitoring reveals that lead is not detectable in the effluent. The project sponsor’s Research and Development Department is working with major suppliers to procure materials that further limit the amount of lead monosilicate in the raw materials.
5. The project sponsor operates several small clay quarries in 17 concessions covering about 118 ha total. Three-year renewable concession rights are stipulated for use only in ceramic tile production. Additional clay is purchased from time to time from other clay concession holders. Reclamation programs include restoration of a layer of topsoil, and planting of vegetation.
6. Based on the findings of its environmental review, IFC’s Environment Division has determined that the existing and proposed facilities are and will be operated in compliance with local laws and regulations and World Bank environmental guidelines. The project sponsor will be required to submit an annual monitoring report to IFC to verify ongoing environmental compliance.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
