American Plast S.A.

completed

- 2 - January 7, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name ARGENTINA: American PlastRegion Latin America and CaribbeanSector General ManufacturingProject No. 009373 1. American Plast (AP) produces plastic containers for packaged foods and for the fast food industry in Argentina. This project involves the expansion and modernization of the existing facilities located in Buenos Aires, as well as the establishment of a new facility in the area of Pablo Nogues.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 by IFC’s Technical and Environment Department Staff. The following potential environmental, health and safety impacts of the project were analyzed:· land use modification at the proposed new plant site;· liquid effluents;· hazardous substances;· air emissions;· solid waste disposal;· storage and handling of chemicals;· environmental performance of existing facilities;· fire safety and emergency preparedness; and· employee training.American Plast 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. Under the Argentinean national and provincial legislation, American Plast is classified as “Segunda Categoria”. Under this regulation American Plast prepared an Environmental Impact Assessment which includes a corrective action plan to address any potential impact to the environment.4. The existing facility is located in Buenos Aires and its main production is of disposable plastic and polypaper cups. This facility according to municipal data is located in a low density industrial area. The new facility will be in Pablo Nogues, 20 km from Buenos Aires and it will be located in a large industrial park-type area.5. American Plast sanitary and pluvial discharges are connected to the municipal sewer and pluvial system respectively. The industrial wastewater generated at the existing facility from the cleaning of floors and blow down from the cooling system is discharged to the municipal sewage system. A dedicated wastewater treatment facility will be installed at the Pablo Nogues facility.6. Acetone is used for the cleaning of the equipment and floor areas in the printing sectors. Once the acetone is no longer used it is stored in drums and collected by an operator of hazardous substances where the acetone is purified and recovered. The solid residues generated during this purification process is treated by a thermal process. American Plast has also contracted the services of an authorized hazardous substances company for the collection and final disposal of oil and oil-water emulsion waste.7. Air emissions generated at the existing facility are particulates from the grinding mill, and from the operation and fabrication of the plastic containers sector. Ozone emissions are generated in the printing sector and are within the limits established by the Argentinean legislation. A filter system of suction and conduction through the piping to collect particulate which can be reused has been installed by American Plast.8. The amount of solid waste generated at the existing facility from the industrial process is 4000 kg/month part of which is recycled or reused, and the remaining is sent to the sanitary landfill managed by CEAMSE.9. The noise level in some areas of the existing facilities are above 85 dBA well exceeding limits established by the Argentinean legislation as well as the World Bank guidelines. American Plast has prepared a Corrective Action Plan (CAP) to address the noise emissions in the different areas of the facility. The CAP will include a specific study to determine the noise level equivalent, measurement of noise level with filters of octave band, and measurement of noise level with the use of hearing protection. American Plast also enforces the use of hearing protection devices.10. American Plast has developed emergency and contingency plans in the event of accidents, and fire. The sponsor will established training programs that will include fire protection, use of fire fighting equipment, housekeeping and hygiene, and general health and safety procedures. A fire brigade will be formed.11. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by American Plast and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that American Plast proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.