Environmental & Social Review Summary
Project Number
7333
Company Name
DEXCO SA
Date ESRS Disclosed
Feb 5, 2010
Country
Brazil
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 7, 1996
Signed : Dec 19, 1996
Sector
Wood Panels and Engineered Wood Products
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
4 February 28, 1996
Project Name Brazil-Duratex II
Region Latin America
Sector Construction Materials
Project No. 007333
1. Duratex operates several plants in Sao Paulo State that manufacture wood products and household fixtures. The company also owns and operates several tree plantations that supply wood to its hardboard and particleboard manufacturing plants. This second investment by IFC in Duratex involves the construction and operation of a new 150,000 m3/yr medium-density fiberboard plant, and modernization of existing facilities that produce brass bathroom fixtures and vitreous china products. This investment by IFC is part of a comprehensive expansion and modernization program by the company and its facilities. The new fiberboard plant will be built on land already owned by the company and designated for industrial development, and the wood supply will be from existing tree plantations managed by the company. The investment in the existing vitreous china facilities include replacement of obsolete equipment in three plants and increased capacity. The investment in the brass fixtures facilities includes new induction electric furnaces, new casting machines, and new presses. From an environmental perspective, one of the objectives of the modernization program in the manufacture of brass fixtures is modification in cleaning equipment to eliminate the use of chlorinated solvents as cleaning agents. Another objective is to continue to bring improvements in wastewater treatment and control of stack emissions in existing facilities.
2. This is a category B project according to IFC’s environmental review procedure because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines or design criteria. Key environmental and occupational health and safety issues that were of particular concern during the environmental review of this project include: liquid effluents; air emissions; solid waste disposal; wood supply; and worker exposure to aerosols, dust, and fumes.
3. IFC required the company to prepare environmental audits of the existing facilities. These audits, and the design specifications for the new medium density fiberboard plant and the new equipment for the existing vitreous china and brass fixtures plants, were the basis for IFC’s environmental review of this investment. In addition, forestry, manufacturing, and environmental specialists from IFC’s Technical and Environment Department visited and inspected the manufacturing facilities and the company’s tree plantations during project appraisal. The plantation operations were visited as part of the appraisal review of the wood supply for the fiberboard, particleboard, and hardboard factories. Following is a summary of key findings of IFC’s environmental review.
4. Design specifications and existing pollution control equipment at the brass fixtures plants include: sleeve filters for dust control at the foundry (electric furnaces, rotary furnaces, deburring machines, and blast cleaners), grinding machines, and tool room; cyclones for dust control at buffing machines, and scrubbers (gas washers) for emissions control at the sand bronze foundry. Dust and stack emissions meet Brazilian standards, which are based on regulations established by the Air Pollution Control District of Los Angeles County (California, USA). Liquid effluents from the electroplating plant are treated for removal of chromium, nickel, and cyanide through a chemical process of neutralization, oxidation-reduction, and precipitation. Sludge from the treatment plant is disposed of in an authorized controlled landfill which is privately operated. Part of the proposed IFC investment will eliminate the use of chlorinated solvents as cleaning agents.
5. Design specifications and existing pollution control equipment at the vitreous china plants include: enclosed crushing and grinding equipment, and filters for dust control. Wastewater treatment includes sedimentation for particulate removal and chemical precipitation of metals. The expansion and modernization program includes waste minimization measures in body slip preparation and mold preparation lines, improved fuel (LPG) efficiency in the kiln, and mechanized glazing to reduce worker exposure to aerosols. Technical review of the design specifications concludes that the vitreous china plants will be able to comply with World Bank environmental guidelines.
6. The new medium-density fiberboard plant is being built on the Agudos industrial site near the existing Agudos particleboard plant. The project is being designed in accordance with local laws and regulations and World Bank guidelines for stack emissions, liquid effluents, and worker exposure to dust and fumes. Class E2 urea formaldehyde glues are proposed for use, but the Company is also prepared to produce E1 products whenever necessary.
7. The company has completed installing a water reclaim system on two of three lines at the Agudos particleboard plant. Once the system is installed for the third line, the factory is expected to virtually eliminate the need for wastewater discharge. At the present time, treated effluent form the third line is discharged to a storage lagoon, with overflow to a nearby small river (Ribeirao dos Patos). Dusts from the board sanders are collected and burned in the thermal fluid heater. Particulate emissions from the stacks are controlled with cyclones.
8. The Jundiai hardboard plant is the most sensitive facility from an environmental perspective because Rio Jundiai, to which the plant formerly discharged liquid effluent, is severely polluted by a wide range of industrial and other human activities in the river basin. The plant is located in an urban area of the City of Jundiai. In 1988, an agreement between the six municipal authorities in the Jundiai basin (including the City of Jundiai), state environmental authorities, and the industries in the Jundiai basin was signed which committed all parties to addressing this pollution problem. Duratex’s role in this has included improvements in its Jundiai wastewater treatment system, and a substantial financial contribution (US$2.4 million) to constructing a wastewater collection and treatment system for the city. Detailed review by IFC finds that Duratex has partially fulfilled its commitment by implementing changes to the factory’s effluent treatment system and by contributing US$1.2 million to the construction of the municipal wastewater collection system. Water consumption at the plant has been reduced to 50 percent of levels in 1984, and the wastewater from the Jundiai plant is no longer discharged directly to Rio Jundiai. Effluent is now pretreated and then discharged to the municipal wastewater collection system. The full expenditure of the committed funds has not yet occurred because the wastewater treatment plant is not yet built. Implementation of this part of the project had been delayed by new regulations, which have resulted in the recent privatization of the construction and operation of this plant. Contract awards have been issued for construction, and the wastewater treatment plant is expected to achieve 50 percent capacity by mid 1997 and full capacity in 1998. Stack emissions from boilers at the Jundiai hardboard plant, using wood waste as the primary fuel source, are controlled with a series of scrubbers (gas washers). This system, developed in Brazil, is now being used in Duratex’s plant in Germany to meet TA Luft emissions requirements.
9. Effluent at the Botucatu hardboard plant, which is located in a rural area, is treated and used by the company for irrigation purposes on grasslands. The grasses are harvested to use for fodder or as fuel for the boilers. Extensive soil monitoring indicates no adverse impact on soil conditions. This plant was awarded a prize (Green Seal) in 1991 by the Society for Improved Environmental Management for its innovative effluent treatment and disposal system, which was developed in partial response to Duratex’s corporate commitment to address water pollution problems. Stack emissions from the boilers, using wood waste as the primary fuel source, currently are not controlled. The company is evaluating the need to install gas washers to ensure that particulate emissions are in compliance with environmental guidelines and standards at all times.
10. The small quantity of effluent produced at the Itapetininga particleboard plant is treated and used by the company for irrigation purposes on grasslands. Extensive soil monitoring at this rural site also indicates no adverse impact on soil conditions. A new boiler with cyclones to capture particulates has just been installed at this plant. It replaces an older boiler without control systems, which will now be used for standby purposes only.
11. The small quantity of effluent produced at the Gravatai particleboard plant is treated and recycled as process water, there is no wastewater discharge. Stack emissions from the oil-fired thermal fluid heater are controlled by automatic regulation of the burn rate, so that dark smoke from particulate emissions is not produced.
12. The company owns about 76,000 ha of pine and eucalyptus plantations in the states of Sao Paulo, Rio Grande do Sul, and Bahia. Plantations are primarily located on hilltops, with slopes and valleys left in the original habitat (either grassland or natural forest). Research over the past 30 years in replanting and tissue culture propagation have allowed Duratex to develop an export market for superior quality seeds and propagules from its plantation operations. Integrated pest management systems are in place which minimize the need for chemicals, and recently have allowed the company to eliminate the use of pesticides. Duratex is the first Brazilian forest products company to receive the “Well-Managed Plantation Forest” certification by Scientific Certification Systems (SCS), awarded in 1995. Only plantations that do not result in conversion of well-developed secondary or primary forests are eligible for this certification. The certification will remain in effect if the company develops formal Conservation and Natural Resources Plan and Policies within 12 months of the award.
13. The company has successfully fostered in its plant operations a Japanese-style management and quality control system that has produced dramatic improvements in the housekeeping at each of the plants and worker pride in the facilities’ operations. As a result occupational health and safety is superior to the norm in Brazil, and is fully consistent with applicable World Bank guidelines.
14. IFC’s Environment Division concludes that the completion of the Jundiai municipal wastewater treatment system is on an appropriate schedule for providing acceptable treatment to the wastewater from the Jundiai hardboard plant. Furthermore, Duratex has met the expected pretreatment requirements for discharge to the Jundiai municipal system. In all other plants, liquid wastes are adequately treated and disposed of in accordance with local laws and regulations and World Bank guidelines. Stack emissions are adequately controlled in areas where air quality is a concern. Tree plantations are operated in a sustainable manner with protection given to large areas of natural habitat. The proposed second investment in Duratex will produce new facilities that will be in full compliance with World Bank guidelines, and produce substantial environmental improvements in existing facilities. The proposed investment has been cleared by the Environment Division for submittal to the Board.
Environmental Review Summary (ERS)
Project Name Brazil-Duratex II
Region Latin America
Sector Construction Materials
Project No. 007333
1. Duratex operates several plants in Sao Paulo State that manufacture wood products and household fixtures. The company also owns and operates several tree plantations that supply wood to its hardboard and particleboard manufacturing plants. This second investment by IFC in Duratex involves the construction and operation of a new 150,000 m3/yr medium-density fiberboard plant, and modernization of existing facilities that produce brass bathroom fixtures and vitreous china products. This investment by IFC is part of a comprehensive expansion and modernization program by the company and its facilities. The new fiberboard plant will be built on land already owned by the company and designated for industrial development, and the wood supply will be from existing tree plantations managed by the company. The investment in the existing vitreous china facilities include replacement of obsolete equipment in three plants and increased capacity. The investment in the brass fixtures facilities includes new induction electric furnaces, new casting machines, and new presses. From an environmental perspective, one of the objectives of the modernization program in the manufacture of brass fixtures is modification in cleaning equipment to eliminate the use of chlorinated solvents as cleaning agents. Another objective is to continue to bring improvements in wastewater treatment and control of stack emissions in existing facilities.
2. This is a category B project according to IFC’s environmental review procedure because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines or design criteria. Key environmental and occupational health and safety issues that were of particular concern during the environmental review of this project include: liquid effluents; air emissions; solid waste disposal; wood supply; and worker exposure to aerosols, dust, and fumes.
3. IFC required the company to prepare environmental audits of the existing facilities. These audits, and the design specifications for the new medium density fiberboard plant and the new equipment for the existing vitreous china and brass fixtures plants, were the basis for IFC’s environmental review of this investment. In addition, forestry, manufacturing, and environmental specialists from IFC’s Technical and Environment Department visited and inspected the manufacturing facilities and the company’s tree plantations during project appraisal. The plantation operations were visited as part of the appraisal review of the wood supply for the fiberboard, particleboard, and hardboard factories. Following is a summary of key findings of IFC’s environmental review.
4. Design specifications and existing pollution control equipment at the brass fixtures plants include: sleeve filters for dust control at the foundry (electric furnaces, rotary furnaces, deburring machines, and blast cleaners), grinding machines, and tool room; cyclones for dust control at buffing machines, and scrubbers (gas washers) for emissions control at the sand bronze foundry. Dust and stack emissions meet Brazilian standards, which are based on regulations established by the Air Pollution Control District of Los Angeles County (California, USA). Liquid effluents from the electroplating plant are treated for removal of chromium, nickel, and cyanide through a chemical process of neutralization, oxidation-reduction, and precipitation. Sludge from the treatment plant is disposed of in an authorized controlled landfill which is privately operated. Part of the proposed IFC investment will eliminate the use of chlorinated solvents as cleaning agents.
5. Design specifications and existing pollution control equipment at the vitreous china plants include: enclosed crushing and grinding equipment, and filters for dust control. Wastewater treatment includes sedimentation for particulate removal and chemical precipitation of metals. The expansion and modernization program includes waste minimization measures in body slip preparation and mold preparation lines, improved fuel (LPG) efficiency in the kiln, and mechanized glazing to reduce worker exposure to aerosols. Technical review of the design specifications concludes that the vitreous china plants will be able to comply with World Bank environmental guidelines.
6. The new medium-density fiberboard plant is being built on the Agudos industrial site near the existing Agudos particleboard plant. The project is being designed in accordance with local laws and regulations and World Bank guidelines for stack emissions, liquid effluents, and worker exposure to dust and fumes. Class E2 urea formaldehyde glues are proposed for use, but the Company is also prepared to produce E1 products whenever necessary.
7. The company has completed installing a water reclaim system on two of three lines at the Agudos particleboard plant. Once the system is installed for the third line, the factory is expected to virtually eliminate the need for wastewater discharge. At the present time, treated effluent form the third line is discharged to a storage lagoon, with overflow to a nearby small river (Ribeirao dos Patos). Dusts from the board sanders are collected and burned in the thermal fluid heater. Particulate emissions from the stacks are controlled with cyclones.
8. The Jundiai hardboard plant is the most sensitive facility from an environmental perspective because Rio Jundiai, to which the plant formerly discharged liquid effluent, is severely polluted by a wide range of industrial and other human activities in the river basin. The plant is located in an urban area of the City of Jundiai. In 1988, an agreement between the six municipal authorities in the Jundiai basin (including the City of Jundiai), state environmental authorities, and the industries in the Jundiai basin was signed which committed all parties to addressing this pollution problem. Duratex’s role in this has included improvements in its Jundiai wastewater treatment system, and a substantial financial contribution (US$2.4 million) to constructing a wastewater collection and treatment system for the city. Detailed review by IFC finds that Duratex has partially fulfilled its commitment by implementing changes to the factory’s effluent treatment system and by contributing US$1.2 million to the construction of the municipal wastewater collection system. Water consumption at the plant has been reduced to 50 percent of levels in 1984, and the wastewater from the Jundiai plant is no longer discharged directly to Rio Jundiai. Effluent is now pretreated and then discharged to the municipal wastewater collection system. The full expenditure of the committed funds has not yet occurred because the wastewater treatment plant is not yet built. Implementation of this part of the project had been delayed by new regulations, which have resulted in the recent privatization of the construction and operation of this plant. Contract awards have been issued for construction, and the wastewater treatment plant is expected to achieve 50 percent capacity by mid 1997 and full capacity in 1998. Stack emissions from boilers at the Jundiai hardboard plant, using wood waste as the primary fuel source, are controlled with a series of scrubbers (gas washers). This system, developed in Brazil, is now being used in Duratex’s plant in Germany to meet TA Luft emissions requirements.
9. Effluent at the Botucatu hardboard plant, which is located in a rural area, is treated and used by the company for irrigation purposes on grasslands. The grasses are harvested to use for fodder or as fuel for the boilers. Extensive soil monitoring indicates no adverse impact on soil conditions. This plant was awarded a prize (Green Seal) in 1991 by the Society for Improved Environmental Management for its innovative effluent treatment and disposal system, which was developed in partial response to Duratex’s corporate commitment to address water pollution problems. Stack emissions from the boilers, using wood waste as the primary fuel source, currently are not controlled. The company is evaluating the need to install gas washers to ensure that particulate emissions are in compliance with environmental guidelines and standards at all times.
10. The small quantity of effluent produced at the Itapetininga particleboard plant is treated and used by the company for irrigation purposes on grasslands. Extensive soil monitoring at this rural site also indicates no adverse impact on soil conditions. A new boiler with cyclones to capture particulates has just been installed at this plant. It replaces an older boiler without control systems, which will now be used for standby purposes only.
11. The small quantity of effluent produced at the Gravatai particleboard plant is treated and recycled as process water, there is no wastewater discharge. Stack emissions from the oil-fired thermal fluid heater are controlled by automatic regulation of the burn rate, so that dark smoke from particulate emissions is not produced.
12. The company owns about 76,000 ha of pine and eucalyptus plantations in the states of Sao Paulo, Rio Grande do Sul, and Bahia. Plantations are primarily located on hilltops, with slopes and valleys left in the original habitat (either grassland or natural forest). Research over the past 30 years in replanting and tissue culture propagation have allowed Duratex to develop an export market for superior quality seeds and propagules from its plantation operations. Integrated pest management systems are in place which minimize the need for chemicals, and recently have allowed the company to eliminate the use of pesticides. Duratex is the first Brazilian forest products company to receive the “Well-Managed Plantation Forest” certification by Scientific Certification Systems (SCS), awarded in 1995. Only plantations that do not result in conversion of well-developed secondary or primary forests are eligible for this certification. The certification will remain in effect if the company develops formal Conservation and Natural Resources Plan and Policies within 12 months of the award.
13. The company has successfully fostered in its plant operations a Japanese-style management and quality control system that has produced dramatic improvements in the housekeeping at each of the plants and worker pride in the facilities’ operations. As a result occupational health and safety is superior to the norm in Brazil, and is fully consistent with applicable World Bank guidelines.
14. IFC’s Environment Division concludes that the completion of the Jundiai municipal wastewater treatment system is on an appropriate schedule for providing acceptable treatment to the wastewater from the Jundiai hardboard plant. Furthermore, Duratex has met the expected pretreatment requirements for discharge to the Jundiai municipal system. In all other plants, liquid wastes are adequately treated and disposed of in accordance with local laws and regulations and World Bank guidelines. Stack emissions are adequately controlled in areas where air quality is a concern. Tree plantations are operated in a sustainable manner with protection given to large areas of natural habitat. The proposed second investment in Duratex will produce new facilities that will be in full compliance with World Bank guidelines, and produce substantial environmental improvements in existing facilities. The proposed investment has been cleared by the Environment Division for submittal to the Board.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
