Environmental & Social Review Summary
Project Number
9619
Company Name
Mabati Rolling Mills Limited
Date ESRS Disclosed
Feb 5, 2010
Country
Kenya
Region
Africa
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 2, 1999
Signed : Apr 7, 2000
Invested : Oct 23, 2000
Sector
Coated Products
Industry
Manufacturing
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
- 6 - August 13, 1999
Project Name Kenya - Mabati Ltd.
Region Sub-Saharan Africa
Sector Iron and Steel Manufacturing
Project No. 009619
1. This project involves support of Mabati’s modernization proposals. Mabati’s operations include Cold Rolling Mills, Chemicals Division, Color Coating and Galvanizing lines. The key component of the project is to replace two existing galvanizing lines (one each at Mombasa and Nairobi) with a single unit at Mariakani near Mombasa. The technology chosen, i.e. non-oxidising type hot dip galvanizing and Aluminium-Zinc (Al-Zn) coating with on-line annealing, is state-of-the-art. The new plant, which is already under construction, will have the capacity to manufacture 80,000 tpa of galvanized and Al-Zn coated coils for the local market as well as for exports in the region. Hot rolled steel coils (imported from Japan, Europe and South Africa) are processed by the company''s in-house Cold Rolling Mill into cold rolled coils, which will be used in the manufacturing of the products. The galvanized coils, after undergoing further processing into plain, corrugated and color coated material will be used for industrial and residential roofing, furniture and office equipment, tanks, air-conditioning duct work and other general engineering fabrications.
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 the project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, health and safety impacts of the project were analyzed:
· impacts associated with past operations;
· air emissions;
· liquid effluent handling, treatment and discharge;
· hazardous materials handling and disposal;
· solid waste disposal; raw materials supply.
· water and power supply;
· emergency planning and response; and
· general health and safety issues.
The information provided by Mabati about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. At IFC’s request Mabati completed an independent environmental audit of all existing operations proposed under the IFC project (this included Cold Rolling, Chemicals and Color Coating operations). This audit revealed that Mabati has no major problems with respect to environmental and safety management issues. Their operations are ISO 9000 certified, and they are targeting ISO 14001 certification for which they are currently developing Environmental Management Plans. Although the plants operated by Mabati are generally well managed, environmental and safety improvement recommendations were made as part of the audit and incorporated into action plans with implementation target dates. Mabati has committed to implement these corrective action measures as part of the IFC project.
4. Key elements of the respective action plans for the Chemicals, Cold Rolling, and Color Coating operations are summarized in the tables below. The independent auditors will play an ongoing role in ensuring implementation of these plans and in the steps necessary, including Environmental Management Plan development, for ISO 14001 certification.
5. This ERS will be translated into Swahili and made available at the factory locations at Mariakani and Nairobi and also at Mabati’s city office at Mombasa. Availability of these will be made known by a notice outside these premises.
6. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Mabati’s proposed project will meet IFC/World Bank environmental, health and safety policies and guidelines and host country requirements. IFC will monitor ongoing compliance with IFC/World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Mabati and by conducting periodic supervision.
The Action Plan is available upon request from the InfoShop.
CHEMICALS
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 Kenya - Mabati Ltd.
Region Sub-Saharan Africa
Sector Iron and Steel Manufacturing
Project No. 009619
1. This project involves support of Mabati’s modernization proposals. Mabati’s operations include Cold Rolling Mills, Chemicals Division, Color Coating and Galvanizing lines. The key component of the project is to replace two existing galvanizing lines (one each at Mombasa and Nairobi) with a single unit at Mariakani near Mombasa. The technology chosen, i.e. non-oxidising type hot dip galvanizing and Aluminium-Zinc (Al-Zn) coating with on-line annealing, is state-of-the-art. The new plant, which is already under construction, will have the capacity to manufacture 80,000 tpa of galvanized and Al-Zn coated coils for the local market as well as for exports in the region. Hot rolled steel coils (imported from Japan, Europe and South Africa) are processed by the company''s in-house Cold Rolling Mill into cold rolled coils, which will be used in the manufacturing of the products. The galvanized coils, after undergoing further processing into plain, corrugated and color coated material will be used for industrial and residential roofing, furniture and office equipment, tanks, air-conditioning duct work and other general engineering fabrications.
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 the project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, health and safety impacts of the project were analyzed:
· impacts associated with past operations;
· air emissions;
· liquid effluent handling, treatment and discharge;
· hazardous materials handling and disposal;
· solid waste disposal; raw materials supply.
· water and power supply;
· emergency planning and response; and
· general health and safety issues.
The information provided by Mabati about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.
3. At IFC’s request Mabati completed an independent environmental audit of all existing operations proposed under the IFC project (this included Cold Rolling, Chemicals and Color Coating operations). This audit revealed that Mabati has no major problems with respect to environmental and safety management issues. Their operations are ISO 9000 certified, and they are targeting ISO 14001 certification for which they are currently developing Environmental Management Plans. Although the plants operated by Mabati are generally well managed, environmental and safety improvement recommendations were made as part of the audit and incorporated into action plans with implementation target dates. Mabati has committed to implement these corrective action measures as part of the IFC project.
4. Key elements of the respective action plans for the Chemicals, Cold Rolling, and Color Coating operations are summarized in the tables below. The independent auditors will play an ongoing role in ensuring implementation of these plans and in the steps necessary, including Environmental Management Plan development, for ISO 14001 certification.
5. This ERS will be translated into Swahili and made available at the factory locations at Mariakani and Nairobi and also at Mabati’s city office at Mombasa. Availability of these will be made known by a notice outside these premises.
6. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Mabati’s proposed project will meet IFC/World Bank environmental, health and safety policies and guidelines and host country requirements. IFC will monitor ongoing compliance with IFC/World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Mabati and by conducting periodic supervision.
The Action Plan is available upon request from the InfoShop.
COLD ROLLING MILL
ISSUE | ACTION PLAN | PROGRESS | TAR. DATE |
| No periodic monitoring of work place air quality | Independent monitoring will be conducted | Reagents for the tests are being imported and are getting cleared at port | August 1999 |
| There is no fully formalized environmental management structure in place | Environmental management is being formalized | Environmental management committee is formed. Preparation of structure and policies as per guidelines has started | October 1999 |
| There is no evidence of an insurance coverage on environmental matter (Locally not applicable) | Matter is being examined | ||
| No evidence for personnel to have been formally trained on hazards, precautions, and procedures for safe storage, handling and use of potentially harmful materials in chemical laboratory | Training will be instituted | All personnel in chemical lab have been explained of precautions and procedures while handling chemicals. All chemicals have been labelled with appropriate cautions/instructions | August 1999 |
| No evidence of noise pollution/levels being measured | Noise pollution/levels to be monitored periodically | Noise levels checked on 14.7.99. Ear plugs are provided to staff exposed to higher levels | Done |
| General lack of awareness of usage of personal protective equipment and training | Training to improve safety and protective equipment usage to be given to all employees | 25 employees have been given one day course in safety. Similar course for another 25 employees will be conducted by 25.9.99 | September 1999 |
| Repeat fire drill and emergency response capability to be carried and records maintained | Fire drills to be repeated with stress on emergency response capability and records to be maintained. | Planned on 10.08.99 | August 1999 |
COLOR COATING
ISSUES OF CONCERN | ACTION PLAN | TARGET DATE |
| Quality of safety boots and masks especially to paint mixing operators and casual labour | Inferior quality of safety boots, uniforms and masks will be identified and replaced. This will be reviewed monthly and replaced where necessary | July 19, 1999 |
| Formal training of personnel on handling of hazardous material and use of protective gear | Training needs have been identified and included in the training schedule | August 17, 1999 |
| House keeping in chemical stores and some areas of shop floor | This is being attended to immediately. Spillage’s and leakages to be sorted out | July 19, 1999 |
| Waste Management as per IFC standards | 1. We are reviewing our waste management systems to comply with the IFC standards 2. We are in the process of changing our processing chemical system to ‘Dry in place’ system which will be free from any toxic effluent | December 1, 1999 |
| High noise levels | Ear mufflers are provided to all staff but we shall impose its use. Awareness training has been identified and included in our training schedule | August 16, 1999 |
| No evidence of fire drills | Records of any future fire drills will be maintained | August 30, 1999 |
| Air emissions monitoring | System of air emissions monitoring and regular review to be put in place | August 30, 1999 |
| Emergency eye wash | Washing basin to be installed near the chemical tanks | July 26, 1999 |
| Pre employment medical examinations for personnel | This is done for staff working in the kitchens. The system for medical examination will be reviewed and implemented accordingly | August 30, 1999 |
CHEMICALS
ISSUE | ACTION PLAN | PROGRESS | TAR. DATE |
| Some spillages of HCL are noticed | To collect all the spillages and floor washings in a tank, analyse and treat to the required quality before draining | Tanks for collection are procured and being installed. Pumps and pipe lines are ordered and expected in the 2nd week of August 1999. Work will be completed by end of August 1999. Taking action to recycle all the liquid effluents and spillages in the process. Taking action to reuse the pump-seal water | August 1999 |
| Air instrumentation compressor noise level is not measured | Noise levels will be checked periodically once a year | Noise level of the air compressor/rectifier checked and found to be 90dB. Ambient noise level outside the project property boundary is 68 dB, which is below the guidelines. Ear mufflers will be provided for the workers in the area. | August 1999 |
| Emergency and safety plans need improvement | Plans and procedures are being improved and being formalized. Employees will be educated and trained. | Action initiated | September 1999 |
| There is no formal environmental management structure in place | Environmental management is being formalized. | Environmental management committee is formed. Preparation of structure and policies as per guidelines has started | September 1999 |
| There is no environmental insurance coverage in place (Locally not applicable) | Noise pollution/levels to be monitored periodically | Matter is being examined | Done |
CHEMICALS | |||
ISSUE | ACTION PLAN | PROGRESS | |
| Materials were handled by operators who had no formal training | To institute formal training for operators and workers | Formal training already started. Written instructions are under preparation | September 1999 |
| Formal waste management procedure not available | To prepare formal procedure for waste management | Already started | August 1999 |
| Housekeeping needs improvement | To pay more attention for better housekeeping | Already started | September 1999 |
| No surveillance program institute for personnel potentially exposed to toxic substances | Operators and workmen to be periodically examined once a year by a clinical officer and on his recommendations, specific cases will be sent for further medical examination. To check the ambient air quality by an outside agency once in six months | Operators already sent for medical examination and workers will be sent for medical examination shortly. Arrangements are already made with SGS Kenya | August 1999 August 1999 |
| Noise and vibration level exposure | To be monitored on a bi-annual basis by a third party. To provide ear mufflers | Already done Being arranged | August 1999 |
| Training of personnel in chemical/material handling, personnel protective equipment, emergency response capabilities and fire protection equipment | To arrange formal training | Already started | September 1999 |
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
