Environmental & Social Review Summary
Project Number
7321
Company Name
ARCELIK AS
Date ESRS Disclosed
Feb 5, 2010
Country
Turkiye
Region
Central Asia and Turkiye
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 21, 1996
Invested : Aug 6, 1996
Sector
Household Appliances (Including Refrigerators, Laundry Machine, Dishwashers, etc.)
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
April 22, 1996
Environmental Review Summary (ERS)
Project Name Turkey-Arçelik Expansion Program
Region Europe
Sector Manufacturing
Project No. 007321
1. Established in 1955, Arçelik is the market leader in the white goods sector in Turkey. Based in Çayirova, near Istanbul, the company has plants in four locations: washing machine and air conditioner plants in Çayirova, a refrigerator plant in Eskisehir, a dishwasher plant in Ankara, and a vacuum cleaner plant in Izmir. This project involves investments to improve productivity and product range in the Çayirova washing machine plant and the Eskisehir refrigerator plant, as well as to provide financing for the company’s modernization program for its current production lines.
2. 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. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
· potential for site contamination on sites to be used for the expansions;
· air emissions;
· liquid effluents;
· spill prevention;
· management of solid and liquid waste;
· noise;
· fire safety; and
· worker safety.
The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. The environmental management program at Arçelik’s dishwasher plant in Ankara is BS 7750 (ISO 14000) certified, and certification procedures are in progress at the other plants. Arçelik is conducting a group-wide program to upgrade its hazardous waste management practices. Site-specific hazardous waste will be containerized, then treated or shipped for disposal as part of the program.
4. Arçelik has appropriate equipment and procedures in place at its plants for spill prevention, worker safety and noise protection, and fire safety; these will extended to the new and upgraded production lines. New equipment will generally have operating noise levels below 80 dBA. Operators are provided with personal protective equipment, and periodic health checks are performed. Other related activities will be conducted in accordance with BS 7750 requirements.
5. Çayirova Washing Machine and Air Conditioner Plants - The expansion project at the washing machine plant will include the development of new energy saving models and a capacity increase from 900,000 to 1,100,000 units per year. The expansion will be constructed within the existing property at a site previously used for the production of old model washers. The investment program is expected to achieve a 33% increase in labor productivity, a 25% reduction in material costs, and a 30% decrease in scrap material levels.
6. An evaluation of air emissions from the Çayirova plant was prepared by the University of Istanbul. Natural gas is used for power and process heat at the plant. There will be no new significant sources of emissions. Results of the emissions analysis indicate that post-expansion emissions will be within Government of Turkey standards and World Bank guidelines for SO2, NOX, and particulate matter.
7. Process effluents and domestic sewage are treated separately at the plant prior to disposal. Up to 200 m3/day of process effluent will be recycled within the painting process. Process effluent will increase by about 25% as a result of the modernization project, and a new industrial waste water treatment plant with a capacity of 480 m3/day has been installed and operating since March 1996. The treatment plant is currently operating at about 40% of design capacity, and treated effluents meet Government of Turkey standards and World Bank guidelines. Non-hazardous and domestic wastes are disposed of by the municipality. Paper, wood, and glass wastes are recycled. Hazardous wastes are containerized for offsite disposal through the group-wide program.
8. Eskisehir Refrigerator Plant - Current production lines at Eskisehir are operating at full 840,000 units/year capacity; the new plant will allow the company to produce frost free models and improve production flexibility. The plant is located in an industrial park, and the new production facilities will be constructed within the existing property. The investment program is expected to achieve a 33% increase in labor productivity and a 50% decrease in scrap material levels. Concurrently with the investment program, the company is, through the World Bank, implementing a Global Environment Fund program to replace chlorofluorocarbon (CFC) based compressor technology and foam insulation blowing agent with more environmentally friendly media. Arçelik has produced CFC-free refrigerators since November 1994.
9. Natural gas is used for power and process heat at the Eskisehir plant. There will be no new significant sources of emissions. An evaluation of plant air emissions was completed by the University of Osman Gazl, and post-expansion emissions will be within Government of Turkey standards and World Bank guidelines. Domestic sewage and process effluent are separately treated at the plant prior to disposal in the industrial park sewer. Treated effluents meet Government of Turkey standards and World Bank guidelines except for oil and grease. Additional equipment to control oil and grease levels will be installed by November 1996. Process effluents will increase about 20% as a result of the modernization project, but will be within the 2,500 m3/day capacity of the existing treatment plant. Domestic and non-hazardous solid wastes are collected by the municipality. Hazardous waste (chemical sludge, waste oil, powder paint) is currently collected and containerized for offsite sale or disposal; these will now be handled as part of the group-wide program.
10. Ankara Dishwasher Plant - As part of its ongoing improvements program, Arçelik is replacing some of the existing equipment with new production facilities. At the Ankara plant, 150,000 dishwashers per year will be built under the Whirlpool brand name. These are quieter and have reduced water and energy requirements compared to existing models. With the new models, packaging materials will be reduced by 40%. The plant is located in an industrial park, and the new production facilities will be constructed within the existing property. As a result of the improvements, overall capacity at the plant will increase by 100,000 units per year to 400,000 units per year, and employment will increase by 75 persons.
11. Production equipment at the Ankara plant is fueled by liquefied petroleum gas (LPG), and emissions presently meet Government of Turkey standards and World Bank guidelines. There will be no significant emissions sources associated with the new dishwasher line. Domestic sewage and process effluent are separately treated at the plant prior to disposal in the industrial park sewer. Treated effluents meet Government of Turkey standards and World Bank guidelines for the current production of one work shift per day. The process effluent treatment plant was designed for the two work shift day planned following plant expansion. The plant has a recycling program for paper, plastic, and wood wastes; these are collected by a contractor who also removes non-recyclable wastes to the municipal landfill. Metal wastes are sold to a scrap dealer. Hazardous waste (treatment plant and dyehouse waste sludges) is currently collected and containerized for offsite sale or disposal; these will now be handled as part of the group-wide program.
12. Izmir Vacuum Cleaner Plant - This plant is located in an industrial park, and all infrastructure is provided by the park. Production of 400,000 vacuum cleaners per year and related products such as brushes will be upgraded as part of the modernization program. To assist in the eventual recycling of worn out vacuum cleaners, the company has modified its molds for major components to include the recycling symbol for the type of plastic used. There are no significant air emissions from the manufacturing processes, and process effluents are contained in a closed loop system. Scrap plastic from the manufacturing process is recycled. Other wastes, including small quantities of hazardous wastes, are collected by the industrial park.
13. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Turkey requirements, and World Bank policies, and environmental, health and safety guidelines.
14. IFC will monitor Arcelik’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the company and by conducting periodic site reviews during project supervision.
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April 22, 1996 10:20 AM
Environmental and Social Mitigation Measures
Broad Community Support
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