Environmental & Social Review Summary
Project Number
7646
Company Name
TETEKS AD
Date ESRS Disclosed
Feb 5, 2010
Country
North Macedonia
Region
Europe
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 30, 1997
Signed : Oct 22, 1997
Invested : Nov 19, 1997
Sector
Garment and Apparel (With Primary Textile Operations, Excluding Footwear)
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
Environmental Review Summary (ERS)
Project Name SEF - MACEDONIA: TETEKS A.D.
Region Europe
Sector Textiles
Project No. 007646
April 25, 1997
1. Teteks was established in 1951 as a spinner of woolen yarns, and at completion of privatization in 1995 had developed into a vertically integrated textile operation which is Macedonia’s largest textiles company. Teteks’ plant occupies a 45 ha site in the town of Tetovo and has four main operating units in separate buildings - spinning, weaving and fabric finishing, knitwear, and ready-made-garments (RMG). This project is intended to be the initial phase of a more comprehensive corporate modernization and restructuring program with the aim to enable Teteks to diversify into the production of lighter weight wool fabrics and garments and improve overall efficiency levels and management performance. The initial investment would focus on upgrading the company’s most significant business line, RMG, as well as the weaving and knitting units.
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:
· air emissions:
· liquid effluents;
· land contamination;
· solid wastes;
· fire prevention and emergency response, and
· employee protection from noise, dust and hazardous substances.
To assist the sponsor in addressing these issues IFC commissioned an environmental audit of Teteks’ existing operations. The audit, funded through Swiss trust funds, was completed in November 1996 by a Swiss environmental consulting firm. The company has agreed to implement an Environmental Improvement Plan (EIP) that addresses those recommendations of the audit which can be implemented in this initial modernization phase, and to implement the remaining recommendations as a condition of any additional IFC investment in Teteks. 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.
3. The company’s energy plant consists of a system of five boilers, three of which are fueled with heavy oil and two with lignite coal. The energy is used to generate steam for manufacturing processes and heating purposes. Measurements of stack emissions taken as part of the environmental audit found that the boiler emissions are within World Bank guidelines. However, high levels of coal dust and carbon monoxide were found in the workplace air in the coal boiler rooms. Teteks has agreed to implement, beginning immediately and completing no later than April 30, 1998, improved ventilation systems through a system of filters and other instruments in order that dust emissions and workplace air quality are in compliance with World Bank guidelines. It is the company’s understanding that a natural gas pipeline connecting Skopje and Tetovo will be completed within three years. As a condition of any additional IFC investment in Teteks, the company would, as recommended by the environmental audit, undertake an energy efficiency study with the aim of reducing energy consumption and replacing the existing coal boilers with natural gas fueled units.
4. Teteks currently has three principal waste water streams: wool scouring effluent, dye house effluent, and sanitary effluent. The wool scouring effluent is of primary concern because of high levels of coliforms, COD and BOD that result from the wool cleaning process. Teteks agrees to significantly reduce wool scouring, which is currently limited to around 15% of all wool used by the company. The company has already been increasing the use of imported wool tops which do not need further scouring. Teteks agrees that by April 30, 1999, it will discontinue the practice of wool scouring in its own facility, unless an effluent treatment plant is incorporated which is satisfactory to IFC. Teteks employs tight controls regarding use of dyes, with the result that effluent from the dye house and dye residue are minimized. Regarding sanitary effluent, there currently is no municipal effluent treatment in Tetovo or at the Teteks plant. While treatment of sanitary effluent is beyond the scope of the present limited investment, the company has agreed to construct sanitary effluent treatment as part of any additional IFC investment in Teteks.
5. The environmental audit found some evidence of surface contamination in the chemicals storage area and at the location of the heavy oil storage tanks. Leakage of liquid effluent pipes was considered to be likely. The company will address existing surface contamination and prevention of future contamination and spills as part of establishing a centralized environmental, health and safety unit within the company. Teteks has also agreed to undertake a study of ground water quality, as recommended by the audit, by October 30, 1998.
6. Waste fabrics and knitwear comprise the largest fraction of solid waste. These are stored onsite, and recycled as a secondary raw material for lesser quality textile products, mainly blankets. Other wastes arising from production are packaging materials, coal slag from the boiler house and communal wastes from the plant area. These are either recycled or disposed of in accordance with local practices. Much of the solid waste is transported to a regional disposal site in Skopje, 40 km to the east.
7. Teteks has in place a detailed fire plan and necessary hydrants, extinguishers and other fire fighting equipment. Fire protection is ensured by a force of about 50 employees, and a further 300 employees are trained in fire fighting techniques. Regular training and drills are provided. There have been no significant fires at the plant in the past ten years.
8. Equipment for employee protection from noise, dust and hazardous substances is provided through the health and safety organization at Teteks. The audit found that stocks of equipment and actual use of the equipment (notably hearing and dust protection) should be improved. The audit also found other hazards such as protective covers missing from equipment, areas with unsatisfactory workplace air quality, and insufficiencies in the chemicals storage area. The audit recommended that these deficiencies can be largely resolved by consolidating the environmental, health and safety functions of Teteks into a central organization for increased effectiveness. The company has agreed to immediately create an internal organization which would address all environmental, health and safety responsibilities. In addition, Teteks will enforce the use of personal protective equipment (dust masks, eye protection and hearing protection) in all areas and particularly in the boiler room.
9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the EIP, the proposed project is being designed to meet Government of Macedonia requirements, and World Bank policies, and environmental, health and safety guidelines.
10. IFC will monitor Teteks’ progress of implementing the EIP 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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April 29, 1997 12:36 PM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
