Environmental & Social Review Summary
Project Number
8396
Company Name
Krupp Bilstein Compa S.A.
Date ESRS Disclosed
Feb 5, 2010
Country
Romania
Region
Europe
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Feb 26, 1998
Signed : Jun 1, 1998
Invested : Jul 20, 1998
Sector
Motor Vehicle Parts
Industry
Manufacturing
Department
Regional Industry MAS LAC & EUR
Project Description
September 19,1997
Page 4
Environmental Review Summary (ERS)
Project Name ROMANIA-BILSTEIN COMPA S.A.
Region EUROPE
Sector MANUFACTURING
Project No. 008396
September 19, 1997
1. Bilstein Compa S.A. is a recently formed (1996) joint venture between Krupp Bilstein GmbH of Germany, a manufacturer of premium automotive shock absorbers and car jacks, and Compa S.A. of Romania, a manufacturer of components for the Romanian automotive industry, including shock absorbers, gas springs, leaf and coil springs, brake equipment and steering boxes. The joint venture has taken over and is located within an 18,000 square meter area of the 23.85 hectare Compa main factory site, located in Sibiu, Transylvania, formally occupied by Compa''s shock absorber and gas spring operations. The joint venture presently employs a staff of about 500 people, most of whom were employees of the former Compa shock absorber and gas spring facility. The project involves the modernization and expansion of Bilstein Compa S.A. to manufacture a range of high quality shock absorbers and gas springs for supply to the Romanian and wider European automotive markets, including four new shock absorber product lines. Production processes include activities such as machining, welding, heat treating, chroming, painting and filling the shocks with oil and gas.
2. Production is based in refurbished existing facilities built between 1969 and 1988, which have been transferred to the joint venture. Since taking over the operations, Bilstein Compa has recently installed and commissioned a new chroming line, which includes chromium recovery, and has shut down the old chroming line - although the old chroming line presently remains in place. A modern electrostatic paint line has also been constructed to replace the old conventional spray painting facilities, and four old inefficient oil fired process heaters have been replaced by two modern heating stations. In addition, the joint venture has commissioned an environmental audit of the site to investigate potential soil and ground water contamination from present and past operations. The results of the audit and other information developed by the joint venture and IFC have been incorporated into a Corrective Action Plan (CAP) and schedule to bring the operations into compliance with World Bank guidelines.
3. 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;
· solid and hazardous waste disposal;
· contaminated land from present or past operations;
· fire prevention and emergency response; and
· worker exposure to hazardous chemicals, fumes, noise and dust.
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.
4. Air emissions sources include alkaline vapor and chromic anhydride aerosols from the chrome plating station, solvent vapor from the painting station, combustion byproducts from the diesel fired heating equipment, welding vapors, and abrasives and metal dust from metal processing. The new plating station is equipped with two wet purification systems for removal of chromic anhydrous and alkaline compounds, respectively; waste water from these systems is directed to the in-plant treatment installation. Electrostatic painting technology has been implemented, which greatly reduces paint emissions. High efficiency filters are used to retain the remaining paint and solvent vapor. Replacement of solvent based paint with water based paint is currently being evaluated. The heating station burns diesel fuel in modern, high efficiency equipment, which reduces combustion byproduct emissions. Welding vapors and metal processing dust are controlled by ventilation of work areas and use of personal protective equipment.
5. Process and potable water is supplied by the municipal water authority. Treated industrial wastewater, domestic sewage and storm water from Bilstein Compa is discharged to the municipal waste water treatment plant. Liquid effluent sources at the plant include waste water and spent degreasing and chroming solutions from the plating station, spent solutions from metal degreasing processes, spent cooling emulsion containing oil and grease, and domestic sewage. There is also a discharge of chromium contaminated ground water pumped from a drainage well near the old chroming station. Process effluents associated with the old chroming line have ceased with the shut down of the line. Spent solutions from the plating station as well as ground water collected in the drainage well is pretreated at the plant, through a process by which the chromium is reduced to a less toxic form and then precipitated as a sludge for separate disposal. The existing pretreatment plant has been rehabilitated for operation in the short-term, and will be replaced by new equipment as part of the proposed project. Spent degreasing and cooling solutions as well as domestic sewage are discharged directly to the municipal sewer.
6. The plant uses a variety of chemicals, some hazardous, in production processes and maintenance activities. These include lubricants, degreasing solutions, solid salts used in the chrome plating process, chemicals used in the laboratory and in metal processing, and diesel fuel. The plant has a current local environmental permit and the environmental audit found that the hazardous materials are generally stored in an appropriate manner. By the end of 1997, the company will set up a secure storage area for hazardous materials. Bulk storage of diesel fuel is in an underground storage tank with secondary containment. Wastes generated at the plant include galvanization sludge from the plating process, paint wastes, waste oil, and domestic trash. Sludge and paint wastes are containerized and disposed of in a designated area of the municipal landfill of Sibiu city designed for such wastes. Waste oil is collected and recycled. Domestic trash is also sent to the municipal landfill.
7. Potential for contaminated land from present or past operations was investigated by the environmental audit commissioned by the joint venture. The audit employed standard protocols and included a site reconnaissance and sampling of soil and ground water. Contamination levels found were compared to recognized soil and ground water cleanup standards, in this case Dutch and Romanian requirements. The site has a long history of industrial use, including the most recent use for shock absorber manufacturing, and varying levels of contamination are found in surface soils. A 250 m2 area of petroleum contamination of the upper 20 cm of surface soil, and the chromium contamination discussed below, will require remediation. Operation of the former chrome plating station resulted in contamination of concrete, surface soil and ground water with toxic hexavalent chromium compounds, as well as contamination of the equipment itself. Although Bilstein Compa is not directly liable for this contamination, the company will, as recommended by the audit, develop and implement a decommissioning plan for the former chroming station in conjunction with Compa, the former owner, and the applicable regulatory authorities. As agreed in the CAP, the company will complete the plan by July 1998, clean up surficial contaminated soil by the end of 1998, and complete the decommissioning by the end of 1999.
8. Bilstein Compa has coordinated its fire prevention and emergency response practices with Compa, the municipality, and its insurers, and also engaged a security and fire protection consultant. Recommendations are currently being implemented. Fire fighting capabilities are provided through arrangement with Compa, who provide such services for the entire complex. Hydrants and hose lines, as well as fire extinguishers are provided at key locations around the plant. Plant fire alarms are currently manually activated; the warehouse and paint shop system will be upgraded with fire detectors and an automatic alarm as part of the project. Fire prevention and emergency response is included in Bilstein Compa’s training program, and drills are held monthly.
9. Since taking possession of the plant in 1996, Bilstein Compa has implemented or is in the processing of implementing improvements in equipment and procedures to improve health and safety conditions. Actions which have already been realized include establishing a health and safety committee; establishing a workplace monitoring program; providing personal protective equipment for all workers, appropriate to their tasks; improvements in ventilation systems in all work places; renovation of sanitary facilities, and implementation of medical examinations of all employees and accessibility to a clinic. By the end of 1997, the joint venture will be making further improvements in the lunch and break room and substitute electric stackers/forklifts for the current diesel powered equipment. Worker exposure to fumes and dust in the welding stations will be reduced by a new exhausting system which will be installed by the end of 1998. Monthly instruction is conducted for work safety, and specialized training is provided for crane operators and personnel working in the chroming and painting stations.
10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Romania requirements, and World Bank policies, and environmental, health and safety guidelines.
11. IFC will monitor Bilstein Compa’s progress of implementing the CAP 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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September 22, 1997 9:10 AM
Environmental and Social Mitigation Measures
Broad Community Support
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