Environmental & Social Review Summary
Project Number
7322
Company Name
Elginkan Holding A.S.
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 24, 1996
Signed : Feb 6, 1997
Invested : Jul 15, 1997
Sector
Pottery, Ceramic, and Plumbing Fixtures (Including Kitchenware)
Industry
Manufacturing
Department
Regional Industry MAS MCT
Project Description
Environmental Review Summary (ERS)
Project Name Turkey-Elginkan Holding A.S.
Region Europe
Sector General Industry
Project No. 007322
May 8, 1996
1. This project involves a corporate loan to Elginkan Holding A.S. (Elginkan). The project financing will support Elginkan’s program to expand and modernize their facilities, including improving plant efficiency and productivity, upgrading product quality, and improving the environmental, health and safety aspects of plant operations. The program will focus on the expansion and modernization of the automotive parts, industrial and sanitary fittings, and sanitary ware and ceramics businesses. The investment program includes funding for the implementation of environmental, health and safety improvements, including the installation of wastewater treatment equipment. Elginkan is a privately held Turkish corporation employing about 5,000 people.
2. As part of an Elginkan project financed by IFC in 1992, Elginkan was required to conduct an environmental audit of all their manufacturing units and to provide IFC with a Corrective Action Plan (CAP) for reaching full compliance with World Bank and Turkish environmental, health and safety requirements. Implementation of the CAP was slightly delayed during the 1994 economic crisis in Turkey, but Elginkan is committed to completing the original CAP by early 1997. Project appraisal included a detailed analysis of the status of the 1992 CAP and review of the Elginkan’s compliance with World Bank policies and guidelines in terms of the new investments to determine if additional actions need to be added to the CAP.
3. 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 reviews completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
· air emissions;
· liquid effluents;
· spill prevention;
· solid and liquid wastes;
· fire prevention;
· emergency response; and
· employee exposure to noise, dust and chemical substances.
The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.
4. In order to assess the environmental, health and safety (EH&S) status of the existing operations as well as the progress made to implement the 1992 CAP, EH&S reviews were conducted at various Elginkan plants with the assistance of IFC’s Technical and Environment Department staff. The objective of the reviews was to identify needed environmental and occupational health and safety improvements required at the facilities to update the CAP, and ensure ongoing compliance with governmental requirements and applicable World Bank environmental, health and safety guidelines. As a result of the studies, areas identified as requiring improvements were:
· corporate level resources for managing EH&S matters;
· liquid effluents treatment and monitoring;
· spill prevention and control of stormwater runoff;
· material control and spill prevention;
· employee workplace exposure monitoring and control;
· contractor safety;
· employee and supervisory EH&S training;
· hazards recognition and control; and
· to a lesser extent, air emissions control, fire prevention and emergency response, and waste management and minimization.
5. The results of the EH&S reviews served as the basis for Elginkan updating the CAP to ensure continuing compliance with governmental regulations and the installation of improvements to meet the additional World Bank requirements. The CAP addresses the above issues and is satisfactory to IFC. The updated CAP, to be implemented during 1996, 1997 and 1998, identifies the specific actions required at each plant as well as the estimated cost and implementation schedule.
6. Elginkan’s plants do not emit significant quantities of air emissions. Process equipment is typically fired with natural gas or LPG; where required, process equipment includes controls (cyclones or bag filters) to recover dust and limit air emissions. Steam boilers at the plants are operated to minimize air pollution through fuel selection (natural gas or LPG) and combustion controls; few boilers are larger than the 4.2 tons of steam/hour threshold level for application of the World Bank air emissions guidelines for boilers. The few boilers with a capacity above 4.2 tons of steam/hour are fired with natural gas or LPG, or if fired with fuel oil or coal, the Sulfur content of the fuel is controlled and the boiler equipped with air pollution controls in order to control the stack emissions of particulate matter and SO2 to levels below the World Bank guidelines. The World Bank emissions guideline for NOx will be applied to potential new boilers larger than 4.2 tons of steam/hour.
7. Elginkan’s facilities generally comply with the governmental standards for process liquid effluents; most plants discharge liquid effluents to Municipal or Industrial Estate wastewater treatment facilities. For plants which directly discharge liquid effluents to surface waters, however, the CAP includes actions to ensure all domestic sewage and process wastewater as well as contaminated stormwater and wash waters will be treated to meet the World Bank guidelines, including: (i) pH of 6 to 9; (ii) BOD5 of less than 50 mg/l; (iii) COD of less than 250 mg/l; (iv) Oil and Grease of less than 10 mg/l; (v) Total Suspended Solids of less than 50 g/l; and (vi) Total Heavy Metals of less than 10 mg/l. The wastewater treatment operations, for facilities to be expanded, will be upgraded to meet the applicable pretreatment and direct discharge requirements.
8. Elginkan has instituted an extensive program to recover wastes for either direct recycle to the process or sale to commercial resource recovery firms. Wastes which are either recycled or sold for recovery include: (i) scrap metals from die cast, foundry, extrusion and machining operations; (ii) waste oils and solvents; (iii) cardboard and plastics from packaging materials; (iv) breakage’s from sanitary ware and ceramic operations; and (v) dusts from ceramic tile, foundry and die cast air pollution control equipment. Solid and liquid wastes which can not be recovered, including garbage, trash, rubble, process wastes and effluent treatment plant sludge are disposed of in accordance with local requirements. Elginkan is currently evaluating proposals for additional resource recovery, including the potential recovery of energy from waste materials, and the recovery and recycling of waste water treatment sludge and treated effluent for one of the ceramic tile operations.
9. Existing fire protection and emergency response programs will be applied to the expansion and modernization program for continuing ongoing compliance with local requirements and World Bank guidelines. Elginkan’s facilities include internationally recognized provisions for fire prevention and fire fighting. Fire safety systems include emergency exit signage, emergency lighting, fire/smoke detectors, fire alarms, fire extinguishers and hoses, emergency power units, emergency water supplies, and automatic sprinklers in selected areas. All plants have an Emergency Response Plan. These plans were developed with the involvement and cooperation of local authorities and available emergency services. Employees are trained for proper response to emergencies, including the use of fire extinguishers and hoses, and the procedures for evacuating the facility during an emergency. The CAP identifies modest improvements which are warranted for these programs.
10. Elginkan’s plants have established programs for employee health and safety which are based on clear policies, adequate resources, effective procedures and employee training. The workplace is monitored for employee exposure to noise, dust and chemical substances. Employees working in areas with noise levels above 85 dBA, nuisance dust levels above 10 mg/m3 or levels of chemical substances above internationally recognized norms are provided with and required to use appropriate personal protective equipment (PPE). Employees are trained with regard to plant safety rules, workplace safety procedures, hazards of the workplace, accident prevention, chemical handling and the proper use of PPE. Clinics have been established at each plant and trained medical personnel are available to monitor employee health and respond to plant emergencies.
11. Elginkan has identified, however, several health and safety actions for inclusion in the CAP, including: (i) improving contractor safety performance; (ii) strengthening monitoring and inspection systems for the identification and elimination of workplace hazards; (iii) further improvements in employee and supervisory health and safety training; (iv) expanding the improvement program for the labeling, handling and storage of hazardous materials and (v) instituting measures to achieve greater employee adherence to plant rules, especially the use of PPE. Additionally, Elginkan will strengthen management oversight of the health and safety program as well as the environmental program by adding professional resources at the corporate and company levels to facilitate coordination of effective programs among all the plants.
12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the updated CAP, the proposed project is being designed to meet Government of Turkey requirements, and World Bank policies, and environmental, health and safety guidelines.
13. IFC will monitor Elginkan’s progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
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Environmental and Social Mitigation Measures
Broad Community Support
Related SII
