PROJECT

Projects

Environmental & Social Review Summary

Project Number

7652

Company Name

Plantation Timber Products (Hubei) Limited

Date ESRS Disclosed

Feb 5, 2010

Country

China

Region

East Asia and the Pacific

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 10, 1997
Signed : Aug 3, 1998
Invested : Sep 3, 1998

Sector

Wood Panels and Engineered Wood Products

Industry

Agribusiness and Forestry

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

- 3 -

International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name China-Plantation Timber Products - Hubei

Region Asia

Sector Timber, Pulp and Paper

Project No. 007652


1. This project is to construct and operate a greenfield, medium density fiberboard (MDF) manufacturing plant on a 10 hectare site located in an industrial zone in Shishou, southern Hubei Province. The Plantation Timber Products’ Hubei (PTP-Hubei) plant will produce 110,000 m3 per annum of wood panels -- made by pressing pulverized wood fibers together with urea formaldehyde adhesive, hardener, and other additives -- from small trees supplied by existing plantations in the region and new plantations established by the Shishou Forest Bureau. Electrical energy requirements will be supplied by the locally-available power grid. Cooling, process and potable waters will be supplied from the Hubei municipal system. PTP-Hubei’s high quality MDF will be sold for use as building products, furniture materials, and other related products. The Hubei plant is similar to another recently constructed PTP MDF facility about to begin operations in Leshan, Sichuan Province (IFC financed in 1995).

2. This 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. IFC’s Technical and Environmental Department staff’s review of this project consisted of appraising technical and environmental information submitted by the project sponsor, as well as a visit to the site and the existing, “sister” Leshan plant. The following potential environmental, safety and health impacts of the project were analyzed:

· wood supply source and management;
· air pollution and emissions;
· liquid effluent treatment and discharge;
· solid waste management;
· chemical storage and handling; and
· employee health and safety, and training.

The sponsor has presented plans to address these issues and to demonstrate that the proposed project will comply with applicable Chinese laws and regulations and World Bank requirements. The information provided about how these potential impacts are addressed by PTP-Hubei is summarized in the paragraphs that follow.

3. Wood raw materials will be obtained from local sources, including established Italian poplar plantations developed under previous World Bank projects, the nearby, Government-run Shishou Forestry Bureau plantations, and new plantations on the river plain to be developed with support from PTP-Hubei. Small diameter logs will be supplied by these plantations which, until now, have been unable to find ready markets for the trees that local farmers and the Government have been encouraged to plant and grow. In addition, the Shishou Forestry Bureau intends to improve their forestry management practices to increase the growth rates of the existing Italian poplar species. Plantations appear to be managed by sustainable forestry management principles.

4. The sources of air emissions at the facility include particulates, SO2, and NOx from the coal-fired steam boilers and the thermal fluid boiler (used for board press and fiber drier); small amounts of formaldehyde in the press area exhausts; particulates from the coal storage yard, and wood dust particulates from the tree sawing, chipping and fiber processing operations. Boiler stack emissions are controlled through a combination of flue gas recirculation, combustion temperature control, and multi-cyclone dust collectors. Particulates from wood processing areas are controlled through the use of a ventilation systems and cyclone dust collectors. Concentrations of contaminants emitted from the stacks will be within World Bank guidelines. To control the generation of coal dust, coal will be stored in a wind-protected and mostly covered area.

5. Process and equipment cleaning wastewater (approximately 90 m3/day) will be collected and pretreated in an on-site wastewater treatment facility. The treatment system comprises pH neutralization followed by sedimentation and biological oxidation in aerated, concrete basins. Pretreated effluent will be discharged to the local Hubei municipal sewerage system, and will meet World Bank limits for pH, BOD5, COD, oil and grease, total suspended solids, and temperature. Stormwater runoff from the plant site will be separately collected and discharged to the local stormwater drainage system.

6. The solid wastes generated by the plant include wood waste, fiber lumps and board trim, ash and slag from the boilers, sludge from the wastewater treatment facility, and unsaleable MDF boards. All wood waste materials, as well as the wastewater treatment sludge, will be recycled and burned as boiler fuel. Coal ash and slag will be collected in closed containers and disposed off-site as a source of construction fill.

7. The principal chemicals and additives used in production include urea formaldehyde (UF) resin/glue, ammonium chloride hardener, ammonium hydroxide buffer, and paraffin wax. UF resin will be mixed and stored in a separate area of the site (the glue factory). Liquid resin will be stored in reinforced storage tanks provided with concrete secondary containment. Dry and containerized chemicals will be stored inside building areas specifically designed to prevent leakage. In addition, special lubricating oil will be used and consumed in the continuous press operation. Flammable material will be stored in a separate storage facility away from the main production area and separated from the area by fire walls. All production buildings and warehouses will be equipped with fire fighting equipment. Emergency response plans will be developed.

8. PTP-Hubei will address all aspects of employee health and safety including workplace air quality and noise, and general health and safety and training. Equipment deemed noisy (such as the wood chipper) will have insulated enclosures to reduce audible noise to acceptable levels. Ear protection will also be provided, as appropriate, to affected employees. All equipment that performs cutting operations will have safety guards and to protect the operators. Employees will be required to wear safety glasses. Several positions will require employees to also wear special protective accessories, such as breathing masks for workers in the press area where formaldehyde is used. The production facility will be properly ventilated to disperse any formaldehyde vapors escaping from the process line, and will comply with all local safety and fire standards. PTP-Hubei will employ fire safety personnel who are trained to handle emergency procedures. PTP-Hubei will maintain a registered nurse on-site to handle basic medical requirements. Management will train local skilled labor to operate equipment in accordance with corporate safety practices, including environmental quality, accident prevention, and emergency procedures. In addition, all staff will receive training in corporate policies and procedures and general safety.

9. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by PTP-Hubei and by conducting periodic supervision.

10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that PTP-Hubei’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.


L:\WPEU\STEPHEN\PTPH.ERS
April 25, 1997 3:50 PM

Environmental and Social Mitigation Measures

Broad Community Support