Environmental & Social Review Summary
Project Number
8184
Company Name
Forja de Monterrey, S.A. de C.V.
Date ESRS Disclosed
Feb 5, 2010
Country
Mexico
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 30, 1997
Signed : Sep 3, 1998
Invested : Sep 17, 1998
Sector
Motor Vehicle Parts
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
- 2 -
Project Name Mexico-Forja de Monterrey, S.A. de C.V
Region Latin America and Caribbean
Sector Automotive Components
Project No. 008184
1. Forja de Monterrey (Forja) was established in 1996 by Grupo Quimmco, a Monterrey based industrial group with interests primarily in the automotive sector. The proposed project involves the establishment of a heavy forge plant to produce large forged automotive components, specifically I-beam front axles for heavy trucks (Class 5-8) and crankshafts for large diesel engines (8 liters and above). The plant will have a design capacity of 24,300 metric tons of forged products per year, equivalent to 126,000 I-beams and 190,000 crankshafts. The plant will be highly automated, allowing for greater process efficiency and quality at a lower cost than existing producers. The new facility will be located in an industrial area in Monterrey, Mexico.
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 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 this project were analyzed:
· site location;
· air emissions;
· wastewater treatment and recycling;
· solid waste management;
· ISO 14,000 certification; and
· occupational health and safety.
Information provided on how these potential impacts would be addressed in the Forja project is summarized in the following paragraphs.
3. The sites for the Forja plant is located within an industrial zone, and is surrounded by major roads, railroads and other industries. The locations status as industrial area is part of the master plan for Monterey.
4. Air emissions at the Forja plant will be limited. The plant will receive billets from other steel producers and no smelting will take place. The heating of billets before the forging process is done by electrical induction and practical no air emissions are resulting. A normalization oven used after the forging process will use natural gas as fuel and will be equipped with low NOx burners, hereby emissions from this process will also be kept at a minimum. Necessary protection (painting) of the final products will take place in closed cabinets with emission control.
5. Forja will implement a wastewater recycling program and practically all process and domestic wastewater from the facility will be recycled or used for irrigation of green areas within the plant site.
6. Solid waste is mainly scales and other types of inert solid waste. This waste will be handled by locally authorized waste management companies.
7. Occupational health standard will follow normal international standards. Compared to other heavy metal handling plants the Forja plant is expected to have low noise levels. The relative low noise levels are caused by the use of forging presses in stead of hammer forging. Employees working will still be required to use hearing protection if they are working in areas were noise levels exceeds 85 dBA.
8. Forja believes that ISO 14,000 will become a marketing incentive in the future. Therefore, Forja is planning to apply for this environmental certification as soon as it becomes available in Mexico from local based certification offices.
9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Forja de Monterrey and by conducting periodic supervision.
10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Forja de Monterrey’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.
P:\CTEEU\FORJA.ERS
July 29, 1997 5:25 PM
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Mexico-Forja de Monterrey, S.A. de C.V
Region Latin America and Caribbean
Sector Automotive Components
Project No. 008184
1. Forja de Monterrey (Forja) was established in 1996 by Grupo Quimmco, a Monterrey based industrial group with interests primarily in the automotive sector. The proposed project involves the establishment of a heavy forge plant to produce large forged automotive components, specifically I-beam front axles for heavy trucks (Class 5-8) and crankshafts for large diesel engines (8 liters and above). The plant will have a design capacity of 24,300 metric tons of forged products per year, equivalent to 126,000 I-beams and 190,000 crankshafts. The plant will be highly automated, allowing for greater process efficiency and quality at a lower cost than existing producers. The new facility will be located in an industrial area in Monterrey, Mexico.
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 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 this project were analyzed:
· site location;
· air emissions;
· wastewater treatment and recycling;
· solid waste management;
· ISO 14,000 certification; and
· occupational health and safety.
Information provided on how these potential impacts would be addressed in the Forja project is summarized in the following paragraphs.
3. The sites for the Forja plant is located within an industrial zone, and is surrounded by major roads, railroads and other industries. The locations status as industrial area is part of the master plan for Monterey.
4. Air emissions at the Forja plant will be limited. The plant will receive billets from other steel producers and no smelting will take place. The heating of billets before the forging process is done by electrical induction and practical no air emissions are resulting. A normalization oven used after the forging process will use natural gas as fuel and will be equipped with low NOx burners, hereby emissions from this process will also be kept at a minimum. Necessary protection (painting) of the final products will take place in closed cabinets with emission control.
5. Forja will implement a wastewater recycling program and practically all process and domestic wastewater from the facility will be recycled or used for irrigation of green areas within the plant site.
6. Solid waste is mainly scales and other types of inert solid waste. This waste will be handled by locally authorized waste management companies.
7. Occupational health standard will follow normal international standards. Compared to other heavy metal handling plants the Forja plant is expected to have low noise levels. The relative low noise levels are caused by the use of forging presses in stead of hammer forging. Employees working will still be required to use hearing protection if they are working in areas were noise levels exceeds 85 dBA.
8. Forja believes that ISO 14,000 will become a marketing incentive in the future. Therefore, Forja is planning to apply for this environmental certification as soon as it becomes available in Mexico from local based certification offices.
9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Forja de Monterrey and by conducting periodic supervision.
10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Forja de Monterrey’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.
P:\CTEEU\FORJA.ERS
July 29, 1997 5:25 PM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
