Elcoteq Tallinn, A.S.

completed

2 April 22, 1996Environmental Review Summary (ERS)Project Name Estonia-Elcoteq Expansion ProgramRegion EuropeSector ManufacturingProject No. 0075901. Elcoteq Oy, the leading Electronics Contract Manufacturing Company in Scandinavia and one of the largest in Europe, proposes to expand the production capacity and product range in its electronics contract manufacturing subsidiary in Tallinn, Estonia. The expansion will take place within the plant built in 1984. The expansion involves the installation of several Panasert Surface Mount Technology (SMT) robot lines. The expansion will allow Elcoteq Oy to triple its production from Estonia and double its total output. The value added is estimated at US$20 million. IFC has been approached to provide US$6.5 million.2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided and mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The environmental review of this project consisted of appraising the technical and environmental information submitted by the project sponsors, and the technical appraisal and site visit visited completed by IFC’s Technical and Environment Department. The following potential environmental, health and safety impacts of the project were analyzed:· existing operations;· waste streams;· the management of solid and hazardous wastes;· fire safety; and· occupational safety and health.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.3. The proposed Panasert SMT robot lines consist of insertion robots, a soldering oven and transportation lines. The manufacturing process consists of solder paste printing; surface mount assembly with automotive assembly lines; reflow soldering in oven; gluing the surface mount components on board; put-through-hole assembling of components either automatically or manually; wave soldering; inspection and testing; and assembly of final products. All this technology is standard in the industry and is already well tested in Elcoteq Oy’s existing operations in both Finland and Estonia. These existing operations comply with Government of Finland and European Union environmental regulations including the provisions of the Montreal Protocol. One of the Elcoteq Oy’s five corporate values is to care for the natural and social environments potentially impacted by its operations.4. The waste streams from the proposed expansion are in three main areas: one hundred kilograms per year of solder paste; two thousand litres per year of wave solder flux; and five thousand kilograms per year of solder waste. In addition, waste packaging is a significant waste stream. There are no major air emissions from the production process. All package waste will be recycled. Industrial wastes will be recycled where possible. Remaining materials will be containerized and removed by companies specialized in the treatment, transportation and disposal of wastes.5. Fire hazards are recognized by Elcoteq Oy and the appropriate preventive measures have been incorporated into the expansion design including a separate storage facility for flammable liquids (wave solder flux) as well as the provision of smoke/fire detectors, fire extinguishers and fire exit doors.6. With respect to general occupational safety, the Government of Finland regulations are to be applied. These include the wearing of gloves when handling hazardous materials (wave solder flux) as well as sufficient ventilation in soldering areas. Noise levels are low. Workplace noise levels are not expected to exceed 80 dBA, which is well below the World Bank’s 85 dBA threshold requiring mandatory hearing protection. Minor gaseous emissions from the soldering process are removed from the workplace via exhaust vents. Employees and new recruits (the Tallinn plant expansion will bring total employment to 900 from the current total of 300) are regularly trained on matters relating to occupational health and safety.7. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Estonia requirements, and World Bank policies, and environmental, health and safety guidelines.8. IFC will monitor Elcoteq’s 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\RON\ELCOTEQ.ERSApril 22, 1996 1:32 PM