PROJECT

Projects

Environmental & Social Review Summary

Project Number

9040

Company Name

Aceros Corsa, 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 : Apr 15, 1999
Signed : Nov 17, 1999
Invested : Dec 28, 1999

Sector

Mini-Mills

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

3

January 19, 1999
Environmental Review Summary (ERS)

Project Name: MEXICO: Corsa Mini-mill

Region: Latin America and Caribbean

Sector: Steel Manufacturing

Project No: 009040


1. Corsa is the leading manufacturer of steel sections and merchant bars for the Mexican market. Corsa plans two-stage expansion and modernization program. The first stage consists of the installation of a new up-to-date continuous rolling mill.

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. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions;
· water supply;
· liquid effluents handling;
· solid waste disposal;
· fuel storage and handling;
· employee exposure to heat, noise and dust; and
· employee training.

The sponsor has provided information about how these potential impacts will be addressed and demonstrates the proposed project will comply with applicable local regulations and World Bank policies and guidelines.

3. The plant is located in an approximately 65,000m2 site in an industrial area in the Municipality of Tlalnepantla, State of Mexico. The site is not located near sensitive habitats and no resettlement will occur as a result of the project.

4. During construction, the sponsor will implement all needed actions to ensure that there will not be negative impacts. The vehicles will be properly maintained and its cargo covered to avoid air emissions. In addition, the roads will be sprayed with water and the construction debris will be placed in the areas authorized by the local authorities. The fuels and lubricants will be properly stored and handled to avoid accidental spills or leaks.

5. The sponsor will immediately inform IFC, if PCBs are found during the dismantlement of the electric substation, and will indicate the measures to be implemented by Aceros Corsa to properly dispose these residues.

6. Natural gas is the fuel used and it is supplied by Pemex by pipeline. The furnaces will have low NOx burners installed thereby ensuring that the 750 mg/Nm3 NOx World Bank guideline will be met. In addition, the project has air pollution controls to ensure compliance with the 50 mg/m3 World Bank particulate emissions guideline. The SOx emissions will be measured, the results will be reported to IFC, and if needed controlled to comply with the 2,000 mg/Nm3 SOx World Bank guidelines prior to first disbursement.

7. Most of the process water used is recirculated and the make-up water needed is obtained from the wastewater treatment plant located in the area and owned and operated by a group of companies, including Acerso Corsa. In addition to Aceros Corsa, this wastewater treatment plant also supplies industrial water quality to the local industries. The small amount of process water lost is pretreated prior being discharged into the municipal sewer system. Aceros Corsa will build a separate stormwater system and will reuse these water for irrigation of the green areas established around the plant. The domestic waters will be released to the municipal authorities for treatment. Purified bottled water is used for drinking consumption.

8. The monitoring reports indicated that the wastewater discharged complies with the World Bank guidelines for pH and oil and grease. However, the sponsor will have to sample total suspended solids concentration to determine compliance with the 50 mg/l World Bank guideline for this parameter, report the results to IFC and if deemed necessary submit a corrective action satisfactory to IFC to ensure compliance prior to first disbursement.

9. Industrial solid residues will be either recycled and/or sold to specialized Mexican recycling companies and the hazardous materials will be either recycled, incinerated or properly disposed in sites authorized by the local authorities. The domestic residues are collected and properly disposed according to the local requirements.

10. Noise levels will be maintained below 70 dB(A) complying thereby with World Bank guidelines. Fuel and hazardous materials will be properly stored and handled. The storage area will have secondary containment to reduce the risk of soil contamination in case of accidental spills or leaks. The oil used as hydraulic fluid will be replaced by glycol-water, which is biodegradable.

11. Aceros Corsa will ensure that the environmental, health and safety measures are up to date and that the employees are properly trained. Personal protective equipment are provided to and required to be used by the employees. Hard hats are provided for all personnel, and dust masks and hearing protection are provided for personnel working in areas with high dust and noise levels, respectively. The employees receive pre-employment and periodic medical check-ups. Qualified personnel is implementing health and safety programs, and Aceros Corsa will continue training the employees in occupational health and industrial safety issues.

12. The sponsor has developed a contingency and emergency response plan for the events of fire, explosion, gas leakage, etc. The sponsor will prepare annual Preventive Maintenance and Accident Prevention Programs and the copies of these documents will be submitted to IFC when completed. Updates to these programs will be reported to IFC in the annual monitoring program. As part of Aceros Corsa’s environmental management plan, the sponsor has a monitoring program which includes periodic air quality and stack emissions testing, and liquid effluent concentrations monitoring.

13. Aceros Corsa will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Aceros Corsa’s monitoring reports will be based on results obtained from the monitoring program including at a minimum the following components:

· stack emissions – monitoring of particulate, NOx, and SOx;
· liquid effluents – pH, total suspended solids, oil and grease, cadmium, chromium hexavalent and total, copper, lead, nickel and temperature increases;
· ambient noise; and
· employee exposure – monitoring of workplace noise, dust and toxics through the plant.

14. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Mexico requirements, and World Bank policies, and environmental, health and safety guidelines.

15. IFC will monitor Aceros Corsa’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

Environmental and Social Mitigation Measures

Broad Community Support