Environmental & Social Review Summary
Project Number
8932
Company Name
HENDRICKSON ROMANIA SRL
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 : Jun 30, 1998
Signed : Nov 3, 1998
Invested : Mar 23, 1999
Sector
Motor Vehicle Parts
Industry
Manufacturing
Department
Regional Industry MAS LAC & EUR
Project Description
Environmental Review Summary (ERS)
Project Name ROMANIA: KRUPP COMPA ARCURI S.A.
Region Europe
Sector Manufacturing
Project No. 008932
1. This project involves the formation of a joint venture--Krupp Compa Arcuri S. A. (KCA)--between Krupp Hoesch Federn GmbH of Germany and Compa S.A. of Romania to manufacture leaf and coil springs for the Romanian and wider European automotive market. An existing Krupp leaf spring production facility will be refurbished and relocated to land and buildings in Compa’s existing leaf spring operations in its Sibiu manufacturing complex. Additionally, part of the leaf spring production facilities inherited from Compa will be refurbished and retained while some machinery will be retired. Compa’s existing coil spring operations will be refurbished by the joint venture. Total land occupied by KCA will be about 2.74 hectares. Employment will be about 940 by year 2000 (of which about 500 are current employees). Compa will transfer the land, buildings and production facilities associated with the leaf spring operation, together with the coil spring production facilities, to the joint venture as its share of the joint venture. The land and building associated with the coil spring operation will remain the property of Compa S.A. and will be rented to the joint venture. The existing operations by Compa had a current local environmental permit at the time of privatization, and an application for new permit has been submitted by the joint venture.
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 during the IFC field appraisal. The following potential environmental, health and safety impacts of the project were analyzed:
· air emissions;
· liquid effluents;
· solid and hazardous waste disposal;
· fire prevention and emergency response;
· contaminated land from present or past operations; and
· worker exposure to hazardous chemicals, fumes, noise and dust.
The sponsor has presented plans to address these issues and demonstrate that 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. Air emissions sources include process and space heating, oil vapors from quenching operations, vapors from painting workshops, and metallic dust from shot cleaning. The primary energy source for process and space heating is natural gas, except for one existing machine, which has electric heaters. Emissions of SO2, NOX, and particulate matter from gas-fired equipment are well within local requirements and the World Bank guidelines. Vapors from quenching operations and painting workshops are collected by hoods and exhaust systems and vented to the building exterior in accordance with local requirements. Some of these systems are currently out of service or in disrepair, and will be rehabilitated as part of the project. The new shot cleaning machine has a dust collection system.
4. The municipal water authority in Sibiu supplies process and potable water. KCA’s new quenching machine will have a closed cooling water circuit. Cooling water from the existing machine (about 3 m3/day) is released into the Compa sewerage system. Industrial wastewater, domestic sewage and storm water from KCA are all discharged via the Compa sewerage system to the municipal wastewater treatment plant.
5. The plant uses a variety of chemicals, some hazardous, in production processes and maintenance activities. These include hardening oil, inorganic zinc varnish, industrial gases, lubricants, and degreasing solutions. The environmental audit found that the hazardous materials are generally stored in an appropriate manner. Wastes generated at the plant include oily scale from the shot peening process, scrap steel, varnish residues, waste oil and domestic trash. Solid, non-hazardous wastes and domestic wastes are containerized and disposed of in a designated area of the municipal landfill of Sibiu City designed for such wastes. Scrap steel and waste oil is collected and recycled.
6. Automatic fire extinguishing equipment will be integrated into the new quenching machine, and manual fire systems on the existing unit will be retrofitted with automatic equipment as part of the project. KCA will coordinate its fire prevention and emergency response practices with Compa, the municipality, and its insurers. 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 will be provided at key locations around the plant. Fire hoses, plant fire detectors, and alarms will be upgraded as part of the project. Fire prevention and emergency response will be included in KCA’s training program.
7. The site has a long history of industrial use, most recently as part of the Compa manufacturing complex. An environmental audit performed in 1997 as part of an environmental permit application and the privatization process found that there were no specific environmental issues related to the activities carried out within the factories involved in the new joint venture. The potential for contaminated land from present or past operations was also investigated by a Phase I environmental audit commissioned by Krupp in 1998. The audit concluded that the issues of concern from the spring manufacturing operations relate to the handling, use, and disposal of heat treating oil. As part of the project, KCA will upgrade oil storage and handling systems that are part of its operations.
8. KCA will implement improvements in equipment and procedures to improve health and safety conditions and training programs. This will include establishing a health and safety committee, establishing a workplace monitoring program, renovation of sanitary facilities, implementation of medical examinations of all employees, and accessibility to a clinic. Personal protective equipment will be provided for all workers appropriate to their tasks. A noise reduction program will be implemented as part of the project. Ventilation systems in work places will be rehabilitated or new systems installed as part of the project.
9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Romania requirements, and World Bank policies, and environmental, health and safety guidelines.
10. IFC will monitor KCA’s 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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May 18, 1998 10:04 AM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
