PROJECT

Projects

Environmental & Social Review Summary

Project Number

7999

Company Name

Plantation Timber Products (Leshan) 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 : Jan 8, 1998
Invested : Mar 11, 1998

Sector

Wood Panels and Engineered Wood Products

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Asia & Pac

Project Description

- 2 -

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 - Leshan Expansion

Region Asia

Sector Timber, Pulp and Paper

Project No. 007999


1. This project is to add downstream, decorative paper, lamination process lines to a recently constructed, medium density fiberboard (MDF) manufacturing plant (PTP-Leshan) located in an industrial zone in Leshan, southern Sichuan Province. The Plantation Timber Products’ Leshan Expansion processing lines will impregnate special decorative paper with melamine resin and bond it to the surface of finished MDF panels using heat and pressure. The project, comprising a new building, equipment and supporting infrastructure, will be located on a 1 ha area on a corner of the existing PTP-Leshan site. PTP-Leshan’s products will be sold as decorative panels and flooring and to the PTP-ChongQing operation for the production of doors.

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 review of this project consisted of appraising technical and environmental information submitted by the project sponsor, as well as a visit to the existing Leshan site which is just starting its MDF manufacturing operations. The following potential environmental, safety and health impacts of the expansion project were analyzed:

· 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-Leshan is summarized in the paragraphs that follow.

3. The sources of air emissions for the expansion project include melamine and urea vapors generated by the dipping and drying areas of the paper impregnation line, and SO2 and NOx emissions from the relatively small, oil-fired steam boiler serving the heated lamination press. A fully enclosed production line serves to limit emissions of urea and melamine vapors during the dipping/bathing process by trapping vapors and recycling them back to the process. The drying process is performed in an enclosed facility with a separate fume ventilation system. The entire building is designed with a comprehensive exhaust system which collects and vents any extraneous emissions. Boiler emissions are controlled through a combination of flue gas recirculation and combustion temperature control.

4. The small amounts of wastewaters generated during the weekly cleaning of the expansion process lines will be collected and pretreated along with other wastewaters generated by the Leshan plant in the existing, on-site wastewater treatment facility. The treatment system comprises pH neutralization followed by sedimentation and biological oxidation. Pretreated effluent will be discharged to the Leshan municipal sewerage system serving the industrial zone, and will meet World Bank limits for pH, BOD5, COD, oil and grease, total suspended solids, and temperature. Stormwater runoff will be collected separately and discharged to the municipal stormwater drainage system.

5. The solid waste generated by the expanded process lines is limited to MDF off-cuts, with or without paper laminates, which will be used as shipping protection material or as alternative fuel for the boiler. Any boiler ash will be collected in closed containers and disposed off-site along with ash from the existing boilers.

6. The principal chemicals used in production are urea and melamine resin solutions. Those liquid materials will be stored in separate, contained areas designed to prevent leakage. Wide access roads have been built around the perimeter of the building to facilitate emergency vehicle access. Thick separator walls will be built between the boiler and production areas. The production building will be equipped with fire fighting and emergency response equipment. PTP-Leshan has already developed emergency response plans for the existing facility which apply to the expansion area.

7. The sponsor will address all aspects of employee health and safety including workplace air quality and noise, and general health and safety and training. All equipment that performs cutting operations will have safety guards and enclosures to protect the operators. Employees will be required to wear safety glasses and ear protection, as appropriate. Several positions will require employees to also wear special protective accessories, such as breathing masks for workers in the paper impregnation and press areas where urea and melamine are used. The production facility will comply with all local safety and fire standards. The sponsor will employ fire safety personnel who are trained to handle emergency procedures. PTP-Leshan maintains 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.

8. 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 the sponsor and by conducting periodic supervision.

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


L:\WPEU\STEPHEN\PTPLEX.ERS
April 24, 1997 3:48 PM

Environmental and Social Mitigation Measures

Broad Community Support