Dae Chang Industrial Co. Ltd.

completed

- 3 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Korea: Dae Chang Industrial WorksRegion Asia Sector Manufacturing Project No. 009075 1. This project involves providing long-term financing in order to restructure Dae Chang’s operations and balance sheet. Dae Chang is a medium sized company that produces extruded brass and copper alloy products from re-cycled copper and other non-ferrous metal scraps. The total financing to be provided includes a loan of US$20 million. 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.2. Key environmental, occupational health and safety issues that are of potential concern in this project include:· air emissions from furnaces and other equipment;· process and sanitary wastewater treatment and disposal;· hazardous and solid waste management;· hazardous materials storage and handling;· fire protection and emergency response; · environmental management systems; and· general worker health and safety.The information provided about how these issues and potential impacts are addressed in the development of the project are summarized in the paragraphs that follow.3. The project involves refinancing of activities within the existing Dae Chang site which forms part of a larger government sponsored industrial complex. New development outside the Dae Chang site boundaries will not occur. 3. The principle source of air emissions from the site arise from the melting of scrap metals (mainly copper and brass). Emissions could potentially include a range of toxic gases as well as particulate matter, SO2 and NOx . Dae Chang employs air pollution prevention and mitigation measures to reduce the impact of air emissions. These include the collection of air emissions and treatment in cooling chambers, “scrubbers” and cyclones. Regular monitoring of emissions indicates that SO2 and NOx levels are within World Bank guidelines. 5. Waste water is treated on site prior to discharge and residual levels of metals and suspended solids fall within World Bank guidelines. Water use is minimized through the use of re-cycled water within heat exchangers6. Waste arising (which include ash, dross, sludge, plastics and oil) total approximately 2,440 tons pa. All waste is removed from the site by a professional industrial waste treatment contractor and disposed of in a controlled manner. 7. Hazardous materials used on site include liquefied natural gas and sulfuric acid. Both are stored in secure areas (the acid within a secondary containment area) and use is regulated to qualified staff. 8. The factory has fire control equipment (fire detectors extinguishers and a fire hydrant) and all staff receive training in fire and general works safety. The wider industrial complex within which the Dae Chang plant is situated operates an emergency life saving system and a dedicated fire fighting unit. With regard to occupational health and safety, employees are provided with personal protection equipment and earplugs where necessary within the site.9. Dae Change has a formal environmental policy which has been endorsed by senior management and employs four staff with specific responsibilities for environment and safety issues within the site.10. 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 the company and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Dae Chang’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.L:\wpeu\Mark\Korea\Daechang-ERS.docJune 4, 1998 8:27 AM