Alpargatas S.A.I.C - CP Program

completed

-3- Environmental Review Summary (ERS)Project Name Argentina: Alpargatas CP Region Latin America and Caribbean Sector TextilesProject No. 007021 1. Alpargatas is Argentina’s largest producer of textiles and athletic shoes. The company, through its subsidiary Calzados, currently has seven footwear production plants, six in Argentina and one in Uruguay. Textile manufacturing is done through the TASA subsidiary in six plants, five in Argentina and one in Uruguay (presently closed). IFC has participated in the modernization and expansion of Alpargatas’ facilities on several projects since the early 1980s. The current project is a program to increase the capacity, efficiency and quality of Alpargatas’ denim manufacturing facilities, capitalizing on new expertise made available through a joint venture with Greenwood Mills, Inc. of the USA. Concurrently with the denim manufacturing project, Alpargatas is making environmental improvements in its existing plants, both to meet World Bank guidelines and in response to recent Argentine regulations.2. The program planned will principally involve work at three locations and will be implemented in phases over a period of two years. The Corrientes plant, located in the Province of Corrientes about 500 miles north of Buenos Aires, was built in 1982 as a specialized manufacturing facility for indigo denim. New spinning and loom equipment will be installed, a new cotton storage area will be constructed and dyeing equipment will be upgraded. The Corrientes plant’s capacity will be increased from 10 to 17.5 million meters of finished denim per year. The Catamarca plant, located in the Province of Catamarca about 80 miles north of Buenos Aires, produces color fabrics, denim and towels. New spinning equipment will be installed, cotton opening and blending lines will be replaced and the weave room will be modernized. The plant’s annual capacity will remain at 12 million meters of fabric. The Buenos Aires or Capital plant is located in a multi-story, 1940s building in the central city. The project will increase annual denim capacity from 13 to 16 million meters of finished fabric through a reorganization of operations and new equipment for cotton blending, yarn dyeing, spinning and weaving. 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 wastes;· fire prevention and emergency evacuation; and· employee exposure to noise, dust and hazardous substances.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.4. Alpargatas’ plants do not produce significant quantities of process air emissions. Steam boilers at the textile plants are operated to minimize air pollution through combustion and fuel quality controls; none are larger than the 4.2 tons of steam/hour threshold level for application of the World Bank air emissions guidelines for boilers.5. The Corrientes and Catamarca plants each have an existing wastewater treatment facility, which discharge to surface waters. These facilities will be upgraded for the modernized operations such that effluent quality meets the respective provincial standards and the World Bank guidelines. Alpargatas’ Buenos Aires plant has access to the municipal sewer and discharges all liquid effluents to the public system. Alpargatas is currently constructing a wastewater pretreatment plant at the Buenos Aires plant; treated effluent will meet Argentine regulations and discharge standards applicable to the Federal Capital. Alpargatas is also assessing the need for additional wastewater treatment, primarily for domestic sewage, at its other plants in order to meet World Bank guidelines for liquid effluents, including a BOD5 level of less than 50 mg/l. The company has prepared a Corrective Action Plan (CAP), satisfactory to IFC, which provides the schedule and cost for the upgrading of the wastewater treatment operations at the Corrientes, Catamarca and Buenos Aires plants.6. Solid waste generated by the plants consists of waste fiber and fabric, conventional trash and effluent treatment plant sludge. The company recycles most waste fiber and fabric into other products, such as floor mops and cleaning cloths. The remaining fiber and fabric wastes and all conventional trash are disposed of in approved landfills. Treatment plant sludge is currently stored or disposed of onsite in accordance with local requirements. Alpargatas is reviewing the sludge management practices at each of its plants, and will implement appropriate sludge conditioning and disposal measures as part of the CAP.7. Existing fire protection and emergency response programs will be applied to the modernization program to meet local requirements and World Bank guidelines. Employees are trained for proper response to emergencies, including the use of fire extinguishers and hoses, and the procedures for evacuating the facility during an emergency.8. Alpargatas has an program for workplace safety and employee protection in place at its plants. Work areas are provided with conditioned air for temperature and humidity control as well as for removal of cotton fibers and dust. Employees working in areas with noise levels above 85 dBA, nuisance dust levels above 10 mg/m3 or cotton fibers above 1 mg/m3 are provided with and required to use appropriate personal protective equipment. The company has a program for labeling, handling and storage of hazardous materials. Training is provided in workplace safety procedures and accident prevention and chemical handling. Trained medical personnel are available at each plant for routine health examinations as well as for assisting in emergencies.9. 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 Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.10. IFC will monitor Alpargatas’ 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.L:\WPEU\JOHN\ARGENTIN\ALPAR.ERSNovember 27, 1995 2:35 PM